JUMPING JOHN GALT                

For change of pace, here’s a short quote concerning the role of marginal tax rates on capital…especially human capital…from an unexpected expert.

            “In 1970 we had a problem.

            The tax rate in the early ‘70s on the highest earners was 83%, and that went up to 98 percent for investment and so-called unearned income. So that’s the same as being told to leave the country.

            And I take my hat off to Rupert (Loewenstein) for figuring a way out of massive debt for us. It was Rupert’s advice that we become non-resident—the only way we could ever get back on our feet financially.

            The last thing I expect the powers that be expected when they hit us with that super-super tax was that we’d say, fine, we’ll leave. We’ll be another one not paying tax to you. They just didn’t factor that in. It made us bigger than ever, and it produced Exile on Main St., which was maybe the best thing we did. They didn’t believe we’d be able to continue as we were if we didn’t live in England. And in all honesty, we were very doubtful too. We didn’t know if we would make it, but if we didn’t try, what would we do? Sit in England and they’d give us a penny out of every pound we earned? We had no desire to be closed down. And so we upped and went to France.”

Keith Richards

The Rolling Stones

From his autobiography, “Life.”

Happy Easter, Everybody!

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