FishingBanter - View Single Post - OT

**Tom Littleton** · October 1st, 2010, 01:16 AM posted to rec.outdoors.fishing.fly

On 9/30/2010 8:04 PM, wrote:

While it is true that the "technical" top tax bracket was 91% (on "net taxable
income"), the loopholes were, well, more the rule than the exception, so very
few actually paid 91%.

also, the 91% was only over the threshold, and as you point out there
were loopholes(not that there aren't now). Still, look at it this way:
when something like that is in place, the emphasis on the quick killing
(a la hedge fund and other money 'managers') for the massive annual
income is lessened. Loopholes or not, if you report an income of, say,
800 million, I'll bet a few hundred don't get loopholed out of the
amount in the 91% bracket. Suddenly, long-term capital gains look like
wise things to aim for, and folks start planning long term strategies,
which benefit the nation. That is precisely the economic model that was
in effect in the 50's and 60's. Then the 'business management' types
took over, looked for easy, fast profits, and we all suffer, to some extent.
On the other hand, your example of France taxing everyone is only
pertinent insofar as France provides social benefits to all that are
unheard of in this nation. Whether that model is sustainable can be
debated, but despite some Eurozone issues, the Scandanavian societies
seem to pull it off without too much effort.

Tom