Inflation-adjusted incomes of the top 0.1% more or less track the S&P 500—also adjusted for inflation—from 1913 to early 1950. The market took off about this time, but incomes did not because of very high top marginal tax rates—up to 94% at its peak—and tough financial regulation. There was also a cultural shift about this time when executives were embarrassed by high pay. For the next 30 years, the 0.1% lashed their wealth to markets that didn’t have any rules, and their incomes took off. Then, stock prices went vertical with the tech bubble in the ‘90s and housing prices the same a decade later—all during an era of declining taxation on capital. Capital gains taxes were cut from 28% in 1996 to 20% in 1997 to 15% in 2003.
ThinkAdvisor's TechCenter is an educational resource designed to give you a competitive edge by keeping you abreast of new tech innovations and need-to-know information that can be applied to your business.
You're invited to the industry's best annuity training!
Find out how to adjust your clients' retirement plans ahead of potential changes.
Helping this growing, underserved market could be the key to massively expanding your production in 2017 and beyond.
May 24, 2017
Join this complimentary webcast to listen in on a roundtable discussion on the current state of the industry, as well as receive tips and strategies...
May 11, 2017
Mega trends continue to impact the wealth management industry. Trends such as new digital competition, increasing compliance standards, fee pressures, and an aging advisor population....
May 03, 2017
Join this complimentary webcast to understand how to better connect with consumers so you can develop high-value packages that work for both sponsors and beneficiaries...