Wealth inequality has increased mostly due to the massive expansion of the global economy, which was a large benefit to capital owners and was a detriment to US labor (whose wages were artifically very high in the post WW2 decades). Global labor competed, capital benefited. Federal Reserve policies since ~1970 have also overwhelmingly favored capital, asset holders, and not workers.
The US tax code has gotten more progressive over time, not less. The very high tax rates from the past were quite narrow in scope, they covered few taxpayers.
The top 25% are paying 85-88% of all income taxes in a given year. The top 10% are paying 70% of all income taxes.
The top 1% yield 20% of all income and pay 39% of all income taxes.
How do you qualify that very progressive tax code as "stopped taxing rich people"?
Simultaneously the US welfare state has massively expanded since 1970. Poverty and homelessness have declined by a lot, while healthcare coverage expanded dramatically. The US spends the equivalent of 20% of its GDP on social welfare programs. That's higher than Canada and Australia, just slightly behind the UK at 22%. All of that is paid for by the top 25% of income earners.
The US tax code has gotten more progressive over time, not less. The very high tax rates from the past were quite narrow in scope, they covered few taxpayers.
The top 25% are paying 85-88% of all income taxes in a given year. The top 10% are paying 70% of all income taxes.
The top 1% yield 20% of all income and pay 39% of all income taxes.
How do you qualify that very progressive tax code as "stopped taxing rich people"?
Simultaneously the US welfare state has massively expanded since 1970. Poverty and homelessness have declined by a lot, while healthcare coverage expanded dramatically. The US spends the equivalent of 20% of its GDP on social welfare programs. That's higher than Canada and Australia, just slightly behind the UK at 22%. All of that is paid for by the top 25% of income earners.