yep, but Reagan inherited a top rate I think of 90%.
Reagan inherited from Carter 70% as the top marginal tax rate.
Yep. But Reagan also knew that historically there was a takings line beyond which the benefit outweighed the return. Solon had it just about pegged in his reforms in ancient Greece when he came up with his fifths plan.
A fifth for seed.
A fifth for government
A fifth for sale
A fifth for food
A fifth for the beasts of burden
(Something like that, or so I remember from a history class about a gazillion years ago) Beyond that and you upset a necessary balance.
“yep, but Reagan inherited a top rate I think of 90%.”
The top tax rate was reduced from 91% to 70% by the Revenue Act of 1964. Proposed by Kennedy, signed by Johnson.
But no one actually paid 70%, there were plenty of deductions that were available. Reagan’s second set of tax reforms got rid of many deductions that were popular, such as interest deductions for cars. However interest deductions for real estate remained, setting up a situation where people were inclined to use home equity loans for purchases, a habit that got them into trouble during the housing bubble.