Well if after $1,000,000 you'd be handing most of it over to Uncle Sam that probably encouraged business owners to instead reinvest into the company more than taking profits for themselves while looking for more ways to cut costs and shaft the employees.
You are absolutely correct. The higher tax rates were a great incentive for companies to invest in CAPEX and actual tangible growth. The company could avoid taxes by spending money on infrastructure and workers that would increase share value by creating greater productivity. The current trend in "trickle down economics" is for the corporations to increase share value by moving money overseas to dodge taxes and showing a bigger bottom line while decreasing productivity and crippling future growth.
It doesn't take a genius to figure out that only one of these strategies is sustainable in the long-term.