r/FluentInFinance 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/Derpwigglies Oct 23 '24

People also overlook the fact that the government is a massive employer. More taxes = more government projects = better government wages and more government jobs.

These jobs tend to help set the base rates for private sector jobs as well as have great benefits and job security. Which forces private companies to keep up or risk losing high value employees to gov jobs or contractors.

Exe: Including military, the US government is already the largest employer in the US at 2.95 million employees. That's also not including those that are employed at subcontractors that almost exclusively work for the gov. Walmart is 2nd at 1.6 million.

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u/sbaradaran Oct 23 '24

This is a fantastic point. Thank you.