Everything you are saying about tax rates is correct. Top rates were higher and now they were lower.
For thirty-five years after World War II, the United States had a top marginal tax rate in the area of 70%. During that period, we had the world’s leading economy, unprecedented rates of GDP growth, and consistent income growth for middle class and blue collar workers.
Since President Reagan started the downward trend in the top marginal rate, we have seen much lower rates of GDP growth, stagnation in the incomes of middle class and blue collar workers and skyrocketing income inequality.
My preference is for the American economy to grow strongly and reward all the people who work for a living. I cannot imagine anyone would disagree with that.
Now maybe, those strong results had nothing to do with the top marginal tax rate, but you can make a good argument for the American economy 1945-1980 was a good place for most Americans. So I think the top marginal tax rate needs a more serious assessment that just being written off as “socialism.” 1945 – 1980 was the Cold War; there weren’t a lot of socialists in the foxholes.
If we want to make America great again, maybe we should do the things America did when it was great back then.
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