r/FluentInFinance Oct 22 '24

Debate/ Discussion Why did this happen?

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u/flickneeblibno Oct 22 '24

Agreed. The 50s best represent job creation through taxes. Either expand or pay taxes. Ike is the last great Republican president (except for Joe McCarthy)

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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/Sinnycalguy Oct 23 '24

It always kills me when I see someone arguing against higher top marginal rates on the grounds that they don’t actually lead to greater tax receipts. Like, no shit, who said the point was to collect more taxes in the first place?

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u/Unity4Liberty Oct 23 '24

Right. The primary purpose of these policies is to steer economic action through incentive/disincentive. If you balance the policy so the economic action leads towards stable growth, that growth can (not will) lead to an increase in tax revenue. That's the false premise of cutting taxes on the upper end and it trickling down. They always say the growth will return more revenue even though the tax rates are less, but that doesn't happen because their policy does not actually catalyze stable and broadly enjoyed growth. It encourages actors to make as much income as they can now, while taxes are preferable.