Does anyone actually know how taxes work in the US? Eisenhower didn’t tax millionaires at 90% only the top portion of their income got taxed that high. The US has a progressive tax bracket system, look it up if you want to know more about us taxes than 99.9 percent of US citizens.
Nobody earned enough to be taxed in the top bracket. That was the entire point. To avoid that top bracket, businessmen lowered prices, or paid employees higher wages, or purchased tax deductible goods and services. What they didn’t do was take additional profit, because the IRS would claim 91% of those profits. Everything the businessman did to avoid that punitive top tier was of great benefit to the economy.
True, but this is actually the core of the underlying problem. They expanded their ability to extract profit from their customers and workers, while retaining ownership of that ability.
With a 91% tax rate, the company would have a compelling reason to offer ownership shares rather than converting profits to capital. The kind of expansion you’re talking about still occurred, but the workers owned it.
I don’t know what were the brakets. But a lot of the time, for billionaires, the vast majority of their income gets taxed at the highest bracket. Because the other brackets are too small to even register in their income.
I had to explain this to my retired parent, who worked their entire life handling payroll. It’s genuinely appalling that the system is so effective at keeping the public uninformed.
Does anyone actually know how taxes work in the US? Eisenhower didn’t tax millionaires at 90% only the top portion of their income got taxed that high. The US has a progressive tax bracket system, look it up if you want to know more about us taxes than 99.9 percent of US citizens.
Nobody earned enough to be taxed in the top bracket. That was the entire point. To avoid that top bracket, businessmen lowered prices, or paid employees higher wages, or purchased tax deductible goods and services. What they didn’t do was take additional profit, because the IRS would claim 91% of those profits. Everything the businessman did to avoid that punitive top tier was of great benefit to the economy.
Businesses also plowed money back into their companies to make them bigger and thus employed more people.
True, but this is actually the core of the underlying problem. They expanded their ability to extract profit from their customers and workers, while retaining ownership of that ability.
With a 91% tax rate, the company would have a compelling reason to offer ownership shares rather than converting profits to capital. The kind of expansion you’re talking about still occurred, but the workers owned it.
I don’t know what were the brakets. But a lot of the time, for billionaires, the vast majority of their income gets taxed at the highest bracket. Because the other brackets are too small to even register in their income.
That’s basically every tax system excluding the ones without taxes or that apply a flat rate to everyone.
I had to explain this to my retired parent, who worked their entire life handling payroll. It’s genuinely appalling that the system is so effective at keeping the public uninformed.
Your post is useless if you don’t mention what the highest tax bracket is.