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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (31784)	1/26/2009 8:23:02 AM
From: Peter Dierks	2 Recommendations Respond to of 71588

You are correct, it was a 95% tax rate that drove so many British citizens to become US citizens. I recall the highest rate in the US being 70% not that long ago. Excessive taxes causes massive distortions in incentives. In the 1970's many people got rich peddling 'investments' to high earning people that had high risk (to the investors) and a stated high potential return with up front tax losses. Congress's solution was to clamp down on tax shelters. They saw te problem caused by their stupid tax laws and tried to solve it by more rules rather than by eliminating the cause of the problem.