HappySqurriel on 28 December 2012
@Aielyn
I don't think you understand ...
Up until the 1980s the marginal income tax rate on the wealthiest Americans was very high, but there were a lot of write-offs and loopholes that dramatically lowered the effective tax rate. In the 1980s the tax code was changed dramatically to eliminate these loopholes and reduce the marginal tax rate. If the United States increased tax rates to the level of the 1960s without re-introducing the loopholes it will cause substantal negative impacts to the economy due to capital flight.
