"The hard left wants a return to the heydays of a rate of 90% of income taxation.
Literally nobody paid those top rates.
First, so few people ever achieved a level of income to trigger it and secondly, those who did were smart enough to find ways to shield that income and avoid those confiscatory tax rates.
A tax rate is and what is actually paid are two very different things.
There exists something called Hauser’s Law (not really a "law", per se - because if a government wanted to confiscate more income and wealth, they could use force to do so), which basically states there is a maximum threshold on how much the government can tax out of its population.
Hauser’s Law is based on a simple fact - that in pretty much every year since 1950, regardless of the tax rate, the government has collected between 17 to 20 percent of GDP in taxes.
Literally nobody paid those top rates.
First, so few people ever achieved a level of income to trigger it and secondly, those who did were smart enough to find ways to shield that income and avoid those confiscatory tax rates.
A tax rate is and what is actually paid are two very different things.
There exists something called Hauser’s Law (not really a "law", per se - because if a government wanted to confiscate more income and wealth, they could use force to do so), which basically states there is a maximum threshold on how much the government can tax out of its population.
Hauser’s Law is based on a simple fact - that in pretty much every year since 1950, regardless of the tax rate, the government has collected between 17 to 20 percent of GDP in taxes.
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