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View Diary: Obama Admin to Citigroup: "No Plane for You!"(UPDATED X3) (347 comments)

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  •  Heck, I'd settle for the pre-Reagan 70% (1+ / 0-)
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    MindRayge

    It's amazing when you think about it. The top income tax rate dropped 30-some percentage points, capital gains got all kinds of tax law protection and numerous other perks to high earners and corporations have been handed out over the past few decades, and what have we to show for it? This financial meltdown. Paper chasing paper. Mind-boggling personal excess and criminal mismanagement at the top. What happened to all the job creation and new investment and other goodies freeing up all this wealth from the prison of confiscatory tax rates was supposed to generate? Obviously, there was some, but not nearly enough for the drastic nature of the cut. When the salaries of the overwhelming majority of Americans have essentially remained flat since 1980, that doesn't say much for the efficacy of trickle-down. If this philosophy was an actual investment on Wall Street, I'd be ready to sell, since the performance was so poor, especially compared with the hype.

    •  Google 'Too Much Capital' 2005 NYT (0+ / 0-)

      http://query.nytimes.com/...

      If the link above does not work, try the google "
      'Too Much Capital'

      With capital in a weakening position, returns that once would have gone to owners of capital have gradually been redirected. That is one way to explain the surge in management compensation in the last two decades. In the early 1980's, when interest rates were high and stock prices low, the average chief executive received no stock options in any given year. Now nearly all get sizable grants, and one study found that chief executive pay rose faster than that of any group save for professional athletes and movie stars. Those who provided the capital had less power to demand the profits from the enterprises they financed.

      Religion gives men the strength to do what should not be done.

      by bobtmn on Tue Jan 27, 2009 at 03:37:22 PM PST

      [ Parent ]

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