Re:Economic Inequality
by WalterBright on Saturday January 02, 2016 @01:24PM
(#10827153)
On paper, the tax rates were higher in the 50s. What isn't mentioned is that was the age of the tax shelter, the 3 martini lunch, etc. It is doubtful anyone actually paid those rates.
Reagan's deal to lower the tax rates included repealing all those deductions and tax shelters.
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Right, it just meant (as mention in pg's parallel article today) that more compenation got rebranded as a corporate expense or non-taxable fringe benefit.
You are welcome to try to eat and drink through tens of millions of dollars, but I doubt you can do it. Even if you can, there will be a lot of happy waiters and cooks serving you ;)
And you don't think the mechanics, aviators, etc who keep the billionaires flying are happy to have jobs now?
Sure they are, but that was not the argument I was half-jokingly making.
What I was saying was that you can't hide meaningful amount of difference in tax rates between then and now in business lunches (which to the best of my knowledge are still around).
On a more serious note though I would consider the law of diminishing marginal utility and its impact on economic activity.
Re:Economic Inequality
by WalterBright on Saturday January 02, 2016 @03:27PM
(#10827744)
Tax sheltering investments were huge.