It seems plausible that over a long term, the top marginal tax rate can have a non-linear affect on growth. If safe returns on investments outpace inflaction+taxes, then you have exponential runaway of inequality.
Between 1980 and 1982 the top marginal tax rate dropped from 70% to 50%. This is a large change in a short period of time, and the tax rate drops continued until 1989 when 28% was the top rate.
It seems plausible that over a long term, the top marginal tax rate can have a non-linear affect on growth. If safe returns on investments outpace inflaction+taxes, then you have exponential runaway of inequality.
Between 1980 and 1982 the top marginal tax rate dropped from 70% to 50%. This is a large change in a short period of time, and the tax rate drops continued until 1989 when 28% was the top rate.
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There is a similar, but less drastic pattern for capital gains: https://www.fool.com/retirement/2017/02/11/a-95-year-history...