Reply to 2025 SALT Deductions

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[quote=Anonymous]Folks on DCUM are are too young to remember bur in 70s the peak Federal rate was around 72 percent on high earners. once you reached a certain income limit. Even crazier in NYC the combined NYC/NYS tax burden was around 18 percent at peak so a rich NYC person on upper income could be taxed at 100 percent.

My town in the 1970s all the Country Clubs near me Wed became a very busy day. Doctors and such realized that 5 day of work was almost 100 percent taxed so why work five days week just work four days.

Country Clubs and Pool clubs were filled with wives and children during week as made zero sense for the women to work if husband was a high earner. My very rich uncle on Long Island his wife who was not much of a homemaker wanted to go back to work when kids a bit older. My young at time was in the 80 percent tax bracket, she got a job paying around $8,000 a year in 1973 and since joint return paid 80 percent taxes on that $8,000 and only took home $1,600 a year!!

Then to add to madness some rich women had Boutiques stores, horse riding places, flower shops that all lost money and was more of a hobby whose point was to generate losses. It would pull some of husbands income out of the high tax bracket.

We even had stuff where people create limited liablity partnerships or buy money losing businesses to generate losses.

Heck my Dentist was a "landlord" of several dumpy buildigns in Queens with rent controled tenants that lost money but brought his income down, He did very well as saved him taxes and when retired tax rates fell and sold buildings for a good gain in the long terrm capital gains bracket.

The high taxes on rich just encourage people to work less and do things to create paper losses to pay less taxes. Better how it is today.

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