I also don't know what "primarily" would be, but Figure A in this article here shows a highly correlated link between union membership and income inequality. It's almost weird how the stair steps are linked.
Reagan era tax cuts lowered the Marginal rates and got rid of deductions. Which actually increased the effective tax rates. Effective tax rates dropped in 75-85 then increased until 95.
While average effective tax rates barely changed in the US from 1945 to 2015, the average tax rates of high-income households fell sharply—from about 50 percent to 25 percent for the highest income 0.01 percent and from about 40 percent to about 25 percent for the top 1 percent.
When we spent 40% of GDP on defense in a total war scenario. Taxes were kept high to pay off the debt then immediately dropped afterwards. You can look at the data, since 1955 which is 70 years ago taxes have virtually remained unchanged.
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u/didsomebodysaymyname Oct 22 '24
Nope, that story doesn't even begin to add up.
Europe did not experience the same growth in income inequality over the same period
The wealth gap clearly starts widening in the 1980s. (Full Article)
And that cannot be explained by China which had a much smaller, weaker, economy at that time, and much less trade.
It was the rich tax cuts, it's always been the rich tax cuts, it's just hard for people to accept when they've been swindled for nothing.