We simply need to bring back that 90% federal income tax bracket we had in the 1950s. If we had the same tax policy today, a CEO or investor would be limited to 5 million dollars a year in earnings. This is what fixed everything.
If a CEO cannot personally get richer by cutting wages, cutting staffing, and outsourcing; all of it stops. That was the secret of affordability. Don't let a thousand rich people own everythjng. Tax them so we can have millions of working millionaires instead of 900 non-working billionaire elites.
As those 1950s taxes and post 1929 financial regulations were cut in the following decades, the wealth inequality that led to the great depression has returned.
This is more a result of Clinton's failed CEO pay reform. It is what created this monster, not the tax bracket. Now, saying that, we DO need to tax these people higher. Eliminate all the ways they're able to squirm out from paying a fair share.
Marginal tax rates are meaningless because, even in the 1950s, the system was complex and can be gamed.
If you want to judge the net effect of tax policy over time, look at the percentage of GDP captured by federal receipts (the vast majority of which are taxes). In the U.S., it's averaged ~16.5%-~17.5% with occasional spikes and dips. Currently, it's very close to what it was in those 90%-marginal-rates 1950s.
I disagree on this. It's not the wealth that is the issue, it's the corruption that allows wealth to be converted into power. Citizens united is so backwards that it actually encodes the corruption as a right.
If a CEO cannot personally get richer by cutting wages, cutting staffing, and outsourcing; all of it stops. That was the secret of affordability. Don't let a thousand rich people own everythjng. Tax them so we can have millions of working millionaires instead of 900 non-working billionaire elites.
As those 1950s taxes and post 1929 financial regulations were cut in the following decades, the wealth inequality that led to the great depression has returned.