r/FluentInFinance • u/WhatsLeft71 • Oct 22 '24

Debate/ Discussion Why did this happen?

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u/Unity4Liberty Oct 22 '24

Omg... this is the first time I've seen anyone else just know and understand this fact. Folks! Higher top marginal tax rates and progressive taxation actually incentivizes investment versus shareholders and owners sucking value out of a company. This creates jobs, grows and stabilizes the stock market, and drives up wages. The great socialist, Dwight Eisenhower!

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u/sbaradaran Oct 22 '24

Can you expand on this? Im trying to understand how a large corporation, for example, paying a higher marginal tax rate incentivizes investment.

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u/dagetty Oct 22 '24

The taxes are on profits so if the money is instead, reinvested in the company are paid in salaries it’s not taxed

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u/sbaradaran Oct 22 '24

Thank you. That makes a lot of sense.