That's right, there was PAIN at the sign of the old 1040 70 pennies deep, if you didn't hire folks and take that employee cost as a deduction, you had to give it up to Uncle and the state you lived in. That was the deal, the GI's were coming home from WWII and Korea, give them a job, or pay 70% on the marginal rate to Uncle Sam and another 5 cents for state taxes. Call it 75 pennies.
Better: hire somebody spend 130 pennies, hoping he brings in 300 pennies to cover himself, and of that 300 pennies 170 left to hire somebody else, or, keep 51 pennies profit. Somebody was employed and somebody paid the bill for real govt with real armed forces to defend us against real nation states, not camel jockeys with stolen airplanes.
We tried pleasure, low taxes, and it isn't working. Let's try a little pain for those who wont hire, those who'll dump the proceeds from the 65% working into T Bills or overseas, let's dry up the sucking chest wound pulling jobs out of Amurrica.
It's just a thought based on what worked. Providence forbid, we do anything as common sense as offer a stick when carrots aren't working. I can still remember my Dad's friends saying, I'd rather hire a guy and save the 70 cents, even if I have to risk another 50 cents for his benefits and costs, because ANYTHING is better than giving it to the government.
I'm just sayin' what I heard and what I saw happening.
<<I'm just sayin' what I heard and what I saw happening.>>
A little bit more was going on that you missed dead. First and foremost was that the 50's were post WII. Europe's infrastructure, factories and industries had been destroyed by the war. Their demand was great at the time with little to compete against American corporations.
Everyone had been engrossed in the war during the 40's. Many babies to play catch up in the game of life.
Yea, taxes were high and yea, avoiding those taxes was a name of the game. Thus, corporations began offering benefits such as medical and life insurance.
So that was then and this is now.
Now, rather than the European countries being debtor nations to the US, the US is the debtor nation to China. Now, rather than there being little competition, there is plenty.
Now, rather than benefits such as insurance being a cheaper way to pay employees, they have destroyed employee pay.
Today, our government takes our money to bomb the terroists (for some reason I don't know) and then takes our money to build their schools, roads, and feed their corruption, while telling us we cannot afford to build roads here because we do not pay enough taxes.
Sorry. Ours is not a problem of taxation. It is a problem of spending - irrational irresponsible spending on the part of the federal government.
It was also a demographic issue. Lots of young people starting families and in their prime working years which coincide with their prime spending years. The opposite of what we have now with more heading into retirement.
The tax rate was not the driver and was lowered in later years because it was a drag on the economy.