Again, ill point to Fiat Money in the 1950's, when tax rates on the top tier were >90%, and
you could have a wife, 3 kids, new house, new car, two weeks vacation a year, and 40 hour a week job.
The drop in tax rates happens to coincide with the fall of American living standards... interesting...
I didnt see any pictures of soup and bread lines for the rich in the 50's either....
-
I agree the tax rate needs to be raised on the wealthy. At the very least the rate on capital gains needs to be bumped up to at least 30% for the upper tier.
But even if we raised income taxes on the rich back to 90% that wouldn't return us to 50s era prosperity. There are so many other factors involved.
We were pretty much the only game in town when it came to cars, our biggest competitors , germany and japan were bombed out shells.
Outsourcing didnt exist, and china and india were third world farmland.
The dollar got you a lot father.
Gas didn't consume such a large percentage of income.
Healthcare didn't bankrupt people.
We were the preeminent Manufacturing superpower.
Education was cheaper.
Most importantly, we cared about building a strong middle class.