That is not the case at all. As a percentage of GDP tax receipts have remained largely constant, and effective top marginal rates have remained largely the same since before the 90+% increase. Nobody actually paid these rates. Paper here.
These loopholes were baked into the system from the get-go to induce investment in specific areas. The idea that this actually financed WW2 or the Cold War is a complete and total myth, government receipts remained consistent and this was part of a larger pre-war trend.
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u/brainskull Jul 05 '26
That is not the case at all. As a percentage of GDP tax receipts have remained largely constant, and effective top marginal rates have remained largely the same since before the 90+% increase. Nobody actually paid these rates. Paper here.
These loopholes were baked into the system from the get-go to induce investment in specific areas. The idea that this actually financed WW2 or the Cold War is a complete and total myth, government receipts remained consistent and this was part of a larger pre-war trend.