That "draconian" system prior to the 1986 Tax Code allowed so many deductions and exemptions that it failed to function. People could deduct sales tax - don't you remember how people saved all their receipts and added that up at the end of the year? Also, you could deduct interest payments on non-mortgages. You could invest money in trusts due to complicated structures. The list goes on and on. I studied the history of the tax code as an intern for the tax professor in law school and am aware of all the twists and turns of the Code from its inception.

If the system had been employed without all of the loopholes that used to exist, the US would have taxed its entrepreneurs out of business. Hell, we officially had a 90% rate during World War II, that started at $200,000 (it had been $1,000,000 prior to the war). However, due to the way that trusts were taxed (or rather, often not taxed) and the massive gaps in the estate and gift tax system, most of the people who qualified paid much less than 90% on that income. In fact, there are still pre-1928 trusts that do not qualify for the estate or gift tax, chugging along happily and not paying taxes - legally.

If you are advocating simply a return to the Clinton rates, it's something that I don't like but I can see that you're at a point where people don't pay more than 50% of their income, when aggregated, in taxes. It is an obscene thought that anyone should ever pay more than 50% total (higher "recapture" rates that eliminate lower brackets but stop working once the money is recaptured are from a policy standpoint defensible, though I loath even that).

Your point about the Beatles simply reinforces a larger macroeconomic truth - America grows economically only to the extent that it provides people an opportunity to prosper. If we lived like Europe, fewer people would come here and our growth would slow. DON'T FORGET THAT 70% OF OUR ECONOMIC GROWTH IS DUE TO CONSUMER SPENDING. That's a disgusting truth, but the point is that without innovators coming here and bringing existing wealth or making new wealth, we will become a second-rate nation. If we have taxes that are lower than Europe's but a comparable living standard and domestic stability, people will continue to come here, bringing talent, wealth and/or ideas with them to keep us growing. If we follow your tax advice, we could see that dry up.

As for tax havens, it doesn't matter for US citizens. We are taxed on worldwide income and all tax havens report that information to the US IRS except Andorra and Monaco, which are coming under MASSIVE pressure and whose activities are scrutinized with a presumption of criminal (tax evasion) intent. AND ANOTHER THING: those Europeans who are "taxed so much" actually can take advantage of tax havens if they're ultra-rich - most European nations don't tax their citizens on income earned in other countries. By keeping income offshore, Europeans avoid their obscenely high tax rates. Once again, Americans can't do that.

Ultimately, I can take comfort in the fact that you aren't making policy in Washington or in a position to affect tax trends generally.

But yes, the Internet shows how everyone has an opinion. Just like they have assholes. You know where this is going - just go take a shower and quit oversimplifying tax policy.