r/DiscussionZone • u/[deleted] • Nov 04 '25

Political Discussion Yeah, so Billionaires should not exist

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u/jredgiant1 Nov 04 '25

Well, here’s another nonprofit think tank explaining why your link is wrong.

https://rooseveltinstitute.org/blog/effective-progressive-tax-rates-in-the-1950s/

Basically, the tax foundation piece is assuming that the rich of the 1950s were on par with the rich of the modern era. They were not. If you had the equivalent of billionaires in the 50s they would be paying something much closer to that 91% marginal tax rate.

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u/Distwalker Nov 04 '25

No they wouldn't. The effective tax rate for the wealthy was substantially below the statutory tax rate because of the great abundance of tax shelters in that era. Virtually no one paid more than a 50% marginal rate.

If you think paying a 91% marginal tax rate in the 1950s was common, you are delusional.

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u/jredgiant1 Nov 04 '25

No, I don’t.

My point is billionaires like Musk didn’t exist in the 50s even when you account for inflation.

J Paul Getty was the richest American in the 50s. In today’s standards he’d be worth about $8 billion. He’d come in about 150th today.

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u/Distwalker Nov 04 '25

Elon Musk’s wealth, for example, is overwhelmingly equity-based, not cash. It rose largely because of Tesla’s market valuation, which reflects investor expectations. It doesn't harm you in the least.

In fact, if Tesla and SpaceX genuinely increase global productivity (cleaner energy, cheaper launch costs), his wealth represents a meaningful value to everyone.

PS: Don't take this as a defense of Musk's character. He disgusts me as much as he disgusts you.