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by freen
265 days ago
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Ah yes, a feeling: even worse than an anecdote. Yes: they reinvested rather than pocketed revenue. Anyway, if did the research, you’d see the effective tax rate for the top income earners in US was 40% back then. Substantially higher than it is today. And that substantially larger portions of revenue were reinvested rather than recognized as profit: high taxes, oddly enough, incentivize investment. Do the math yourself: $1m in profit, 30% tax rate vs 1% tax rate: which rate incentivizes you to reinvest? |
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