90% Marginal Tax Rate Explained

We debate tax policy quite a bit here on WSO, and it is often mentioned that marginal tax rates were as high as 90% during the Eisenhower administration. I ran across this interesting explanation of enormous tax rates and how modern economic theory (including the Austrian theories I so often espouse) are junk economics. Michael Hudson brings up a lot of interesting points, especially about how loopholes were written into the tax code to benefit the rich as early as the 1920's, and how those loopholes have led us today to be heavily indebted and have an average holding time of 22 seconds for stocks. I'm interested to hear what you guys think. Have we been dead wrong about tax cuts for the rich?

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