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by laughing_man
26 days ago
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Nobody paid those high tax rates. Everybody was writing off cars, home offices, hobbies, "business" dinners, and everything else. The tax simplification that occurred in 1986 struck a bargain: We'll lower your tax rate, but we're not going to allow you to take all those BS deductions anymore. The effective tax rates barely budged. An effective 94% tax rate is a huge drag on the economy, since it makes risk taking impossible to justify. You'd be stupid to start a business or invest in a startup at that rate. There's no surer way to throw half your work force out of work. |
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