The top rate of income tax has varied widely over time. It first spiked in the First World War, and again in the 1920s depression and in the Second World War, when it peaked at 90%. The top rate remained high until 1988 when it dropped to 33%. These high top rates of income tax encouraged widespread tax evasion and avoidance through the many loopholes in the complicated tax system that had evolved following the Second World War.
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Source: Paul Goldsmith, We won, you lost, eat that! Auckland: David Ling, 2008, p. 334
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