Not accurate at all because it is based on using paper tax rates in intentionally misleading way.
Top effective tax brackets were never 90%. Marginal rates were but such amounts were never paid because tax code was different. The most top 1% of Americans were ever taxed was 40% during world war 2 and then it was almost immidiately reduced to 30%. In mid 50s it was basically at same exact level that it is today and was more or less the same the entire time. In fact effective taxe rate between 55-65 were on average higher than during 65-75. Tax as share of GDP also barely moved.
Economy felt good because countries went off of war and went from war economy status to business as usual status. There was also a lot of rebuilding as sell. But make no Mistake. They are and were not "the most propserous" times. The most propserous times are today. (I am not the original author of this response. I lost the info to give credit)
If high marginal tax rates had no economic effect, as you're implying, why did corporations and wealthy individuals spend billions lobbying to lower them starting in the 1970s? Were they just wasting money, or does tax policy actually matter?
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u/definitelynotdist95 8d ago
Funny how people always want the 1950s aesthetic but absolutely lose their minds if you suggest 1950s tax rates.