History of the Progressive Tax Structure

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Originally Posted by finnbow

I think studies have shown that the disincentive kicks in only when the level of taxation goes north of 50% (or even more). Raising or lowering taxes in the 20-30% range by a couple of points has no such effect.

That's why I picked 1981 as the cutoff date. That was the year the top tier went down to 50%. In 1980 it was 70%.

Where the discincentive actually kicks in of course varies by individual. For a laboror such as a dentist the disincentive probably kicked in pretty fast. For a fat cat that makes money sitting on his butt probably not so much.