And you believe, no doubt, that re-instituting this tax at a higher level will bring back the golden days of yesteryear?
I do.
Here's the thing about taxing the rich.
It reduces their incentive to make more money.
Which is a very good thing.
For example, let's say the top marginal tax rate is 80%. It applies to all income over, say, $10 million. Income includes ALL income too, including capital gains.
You have a decision to make. If you fire 100 employees, you can increase your profits by $1 million. And make $200,000. What's your decision?
Now let's look at the current tax system. If you fire 100 employees, you can increase your profits by $1 million, funnel those earnings through a structure so they are taxed as capital gains, and make $850,000. What's your decision?
The reason we had great economic expansion is because very high marginal tax rates on very high income is a strong disincentive against earning very high income. It encourages the people who are running the businesses to share the wealth with everyone who contributes to the business.
When you eliminate taxes on high income, you are encouraging most of the wealth to go to a small number of people.
Why pay an employee an extra $10,000 that the government will take $4,300 of (15.3% FICA and 28% income) when you can keep it for yourself and only pay the government $1,500?
That's the problem: Under the current tax system, paying employees (in the US) is stupid! The more employees you have, the MORE taxes you pay!