[quantummagic]

This is a lazy idea that keeps getting trotted out. The 90% tax bracket only existed on paper, with an effective rate closer to 40%. Economists have shown that tax revenue remained remarkably unchanged, while having negative consequences for investment and productive use of capital. Instead, the relative prosperity of workers during that time came from a lack of global industrial competition and a massive post-war manufacturing monopoly. Without a completely sealed, loophole-free tax system and total global compliance, implementing a 90% tax rate today would simply result in widespread tax avoidance, capital flight, and a reduction in domestic investment. The rich do not make the bulk of their wealth through a salary (many taking $0 / year) like they did back then, but rather through stock options, etc.

[paulryanrogers]

If the higher tax rates were so ineffective then why was the divide between the richest and the workers so much smaller?

Do tell, what is the effective tax rate that the rich pay today?

[azan_]

If lower tax rates are so bad, then why are workers nowadays much, much richer than back then?

[runtime_terror]

We have more shit, that's true. And advancements in medicine have reduced child mortality and lifespans.

Worker wealth is absolutely not relative to the overall wealth in this country; that disproportionately goes to the top 1% (we're now at 1920s levels) and it's getting worse every year.

The average first home purchase age is 40 compared to the 20s then. Getting a college degree was free or cheap for many of our parents/grandparents, now it's mostly a luxury. Healthcare costs put people into permanent debt. Most people are struggling paycheck to paycheck.

Is your argument that life is all around better for the average person now because we don't tax the wealthy/let them accumulate most the wealth in this country?

[runtime_terror]

The top 0.01% payed an effective rate of 50-75% in the 40s. That is drastically higher than today. Just because the wealthy found ways out of the full 90% doesn't mean the taxation rates were a huge factor in the standard of living then.

Were there other factors? Absolutely but it's disingenuous to claim there was no difference in tax policy now vs then.

> widespread tax avoidance, capital flight, and a reduction in domestic investment

Do you not think the US has the capability to enforce their tax laws despite these efforts? It absolutely gets its tax dollars from foreign earned income, it can penalize such tax avoidance strategies (these companies operate in the unite states after all).

> The rich do not make the bulk of their wealth through a salary

Yeah, because it's a method to avoid taxation obviously. That's why we need to tax loans against assets ("buy, borrow, die") and increase capital gains to be at least above that of labor.

It's so incredibly obvious the wealthy do whatever they can to avoid taxation. Why are you so dead-set on furthering their agenda?

I'm curious, what's your solution to wealth inequality or do you think we should just let the super wealthy return to the robber barons/kings of yesteryear?