[eszed]

> Higher marginal income taxes discourage investment

I'm not persuaded that this is true. They discourage investment in the stock market, and inhibit a venture capital model, but I think they encourage internal investment. I don't think it's a coincident that places like Bell Labs and Xerox PARC thrived during the high marginal tax regime, nor that back then companies were more apt to train and retain skilled labor: when C-class and stock-holders are taxed at a high rate there are more-useful things to do with profits than eye-watering compensation packages and stock buybacks.