latetotheparty


Coincidence?
November 9, 2006, 2:11 am
Filed under: Uncategorized

From a response to the WSJ “Capital” column on executive pay:

Check out a chart of the income tax rates (Siegel has a good one in his book “Stocks for the Long Run”) and you’ll see the tax rate on the highest incomes was 90% from the mid-1940’s to 1962 and then 70% from 1962 to late 1970 — hmmm — the same time when CEOs’ comp stayed relatively the same as hourly workers. In 1981 the top marginal tax rate dropped to 50% and is now 35%. When the extra dollar earned by CEOs stopped going mostly to Uncle Sam, the CEOs decided they wanted/needed more.

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