posted on Aug, 11 2010 @ 08:50 PM
reply to post by woodwardjnr
I don't think that taking away their money and giving it to someone else is the reason for the economic growth experienced during that time
The exorbitant tax rate probably had it's leveling effect in another way; The rich kept less of their profits and gave more of it to their employees,
thus providing them with a living wage.
With the tax rate so high, it made more sense to use the company's profits to keep the employees happy and pay them enough to spend on the economy.
Well paid employees kept the economy moving and America prospered.
With the advent of lowering the top tax rate, it became profitable again for the rich to keep the lion's share of the companies earnings and the
income gap soared. Economic stagnation followed in the wake of the destruction of the middle class.
A strong economy needs a strong middle class, the world can't keep turning on just the wealth of the top 1%. The system was bound to fail once
unlimited greed was allowed to take over the marketplace.
Thinking of it this way, I'm all for bringing back the 90% top tax rate.