> (And given those taxes, CEOs had less incentive to increase their salaries.)
Of course. So they just gave themselves company cars and executive washrooms and million dollar desks.
> Deductions have a tendency to accumulate over time. There were a bunch of deductions, but fewer than today.
We got rid of a bunch in the early 80's. As a simple example, all interest (not just interest on primary housing) was deductible before then.
> but historically stock options were a much smaller portion of executive compensation than is the case today
I wasn't suggesting stock options. You don't have to rely on stock options to convert your salary into capital gains. If you were a doctor or a lawyer pulling down a lot of money, you just formed a company and left the money you weren't consuming immediately in the company's bank account.
There has not been a bracket that high since 1941. http://www.hkmscpa.com/hist%20tax%20rates.htm#5
> (And given those taxes, CEOs had less incentive to increase their salaries.)
Of course. So they just gave themselves company cars and executive washrooms and million dollar desks.
> Deductions have a tendency to accumulate over time. There were a bunch of deductions, but fewer than today.
We got rid of a bunch in the early 80's. As a simple example, all interest (not just interest on primary housing) was deductible before then.
> but historically stock options were a much smaller portion of executive compensation than is the case today
I wasn't suggesting stock options. You don't have to rely on stock options to convert your salary into capital gains. If you were a doctor or a lawyer pulling down a lot of money, you just formed a company and left the money you weren't consuming immediately in the company's bank account.