One has to be of a certain age to remember all the investment money going into “tax shelters” instead of productive assets.
Yep. And at this point, the only people who remember how they worked in detail are accountants of retirement age. Which is a risk, because now we’re besieged with these useful idiots who think that high marginal rates are the ticket to prosperity, and have conveniently forgotten (or never knew) how those legalized tax scams used to work.
You think that “big money” has too much influence in politics today? Run the clock back to the days of high marginal rates. Then, you’d REALLY see how big money can run the country.
These things and more sheltered high income people from the high marginal rates. When the rates came down, these shelters were money losers, and those investments went into productive businesses.
Well, not sure how much actually went into productive business investment. Some did. But it seems to me that most of the money went into the stock market and real estate.
But that’s a discussion for another day.