Left unsaid by the article is that the tax shelters the wealthy invested their money in, were less productive investments. When Reagan lowered the tax rates in exchange for eliminating the tax shelters, the wealthy then moved their investments to more economically productive endeavors.
This makes for a more productive economy overall.
I.e. the higher the tax rates, the more contortions people will engage in to avoid those taxes, and economic prosperity will correspondingly suffer.
This makes for a more productive economy overall.
I.e. the higher the tax rates, the more contortions people will engage in to avoid those taxes, and economic prosperity will correspondingly suffer.