This was all explained in "Taxation: The People's Business". The rich would just reduce income even if they were chomping at the bit to get richer. When the author’s tax reduction plan was put into effect the economy roared until the taxes were reversed. That led to an extended depression. Did I mention the book was a compilation of article published in 1924? http://ia600508.us.archive.org/2/items/taxationthepeopl033026mbp/taxationthepeopl033026mbp.pdf The way this was put into PDF the first page or two is blank.