Very few people ever paid 91%. The reason was there were all sorts of tax shelters available at the time. This resulted in a lot of misallocation of resources. A lot of personal expenses could also be written off as a business expense, the most infamous of those was the "three martini lunch".
Reagan, in his deal to reduce the top marginal tax rates, also eliminated a vast swath of tax shelters and tax deductions.
More generally, the government consumed much less of the GDP in the 50s than it does today.
Reagan, in his deal to reduce the top marginal tax rates, also eliminated a vast swath of tax shelters and tax deductions.
More generally, the government consumed much less of the GDP in the 50s than it does today.