Nobody paid those high tax rates. Everybody was writing off cars, home offices, hobbies, "business" dinners, and everything else.

The tax simplification that occurred in 1986 struck a bargain: We'll lower your tax rate, but we're not going to allow you to take all those BS deductions anymore. The effective tax rates barely budged.

An effective 94% tax rate is a huge drag on the economy, since it makes risk taking impossible to justify. You'd be stupid to start a business or invest in a startup at that rate. There's no surer way to throw half your work force out of work.