Not to mention there used to be even more tax shelters and deductions. The 86 tax law really pruned those. Everyone played extensive tax games.
Krugman claimed that the rich paid something like 70% after all was said and done, and I really doubt it.
Pruned? It cut the hell out of it. That is why so many Country Clubs went out of business. You could not write the yearly dues and fees off as customer entertainment expense anymore. Same thing with company cars or other perks for executives. They have to be reported now as 'imputed income.' Hell, I had to pay imputed income on a life insurance policy the company paid for me! Figure that. I never saw a penny of it and had to pay tax on it anyway.
There was a lot that changed back in 86 --- most for the better, I might add, but Krugman has his head up his butt if he thinks it was a better world back then tax wise.
Throw those same kind of rates in today without the same deducts and exemptions, and this economy would shut down damn near immediately.
Hell, I remember writing off interest on my car loans and credit cards on my meager tax return. After '86, you could not do that anymore. Does Krugman want to allow that again or does he want to 'punish the middle class?'