My question is did the Rich/Wealthy really pay this rate or

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My question is did the Rich/Wealthy really pay this rate or did they keep the profits in their businesses and reinvest the profits do the Rich make even more money if they are making profits eve with higher taxes ?

Thursday, October 18, 2007

Reich: The logic of Taxing the Rich, and Why Dems are Afraid to Use It
Robert Reich makes the case for a more progressive tax structure:

What’s fair? I’d say a 50 percent marginal tax rate on the very rich (earning over $500,000 a year). Plus an annual wealth tax of one half of one percent on net worth of people holding more than $5 million in total assets. Can’t be done, you say? Well, the highest marginal tax rate under Republican Dwight Eisenhower was 91 percent. It dropped under JFK to the 70 percent range. You say the rich will leave the country rather than face a marginal tax of 50 percent? Let them, and take away their citizenship.

http://economistsview.typepad.com/econo ... logic.html

Didn't we already do this topic?

As I noted the last time, I like the way the rates compare now, ie comparable enough to NOT drive what should be an economic decision. I don't like when the government tries to use tax rates to influence entity choices or capital structure, or when they do so inadvertently, since these should be economic decisions. Right now, they mostly are but, no, it was not always that way.