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Subject:  Re: Tax upon tax Date:  12/5/2012  11:41 PM
Author:  markr33 Number:  410593 of 536784

One thing that is important to understand is that people didn't really pay 70% or 90% tax rates on what they really earned, they only paid that on "taxable" income. And there was a huge industry of tax shelters that could provide you lots of earning with only a portion of it being taxable. You would end up paying rates a lot closer to today's rates. For example, there were investments that would earn $X and only 1/3 of $X was taxable income, so at 70%, that results in a tax rate of about 23.3% or not much more than capital gains taxes today.
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