If Obama Loses, It Won't Be Because "It's the Economy, Stupid"

On the progressiv­e tax front, I am with you on pretty much everything you've said. But I see I needed to be more clear about the specific part of the progressiv­e rates of the Great Prosperity that is most important.



The top marginal rate was far higher, obviously, than today's rate. The top rates were in upper 60 and 70% ranges in the middle of the depression thru the 1960s. There were periods where it was higher, but that's not the point. The point is that the rates were substantiv­e enough to become an income ceiling. There were no bill gates' created then because it was virtually impossible­. The incentive was fully against short term gains.



That ceiling prevented the current trend where the highest paid are increasing­ly paid irrational­ly higher amounts at the expense of the middle class. That ceiling promoted long-term business planning because if you wanted a couple vacation homes, boats, and other luxuries, you needed to accumulate the income over more years in order to afford them.



The entire system was stabilized by that ceiling and we need to get back to that. But we are still so far away from it that the smash-and-­grab economy will rage on indefinite­ly.
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