"There is a rich tradition in the United States of utilizing taxes not just to raise revenue but to deliberately limit concentrated wealth. The original push to tax the rich developed toward the end of the first Gilded Age, when populists and reformers advocated the income tax as a progressive alternative to the tariff. The movement to replace the tariff viewed the income tax as an effective tool to curb inequality and corporate power. As tax law scholar Michael Graetz notes in his recent book The Power to Destroy: How the Antitax Movement Hijacked America, the income tax was viewed by Gilded Age advocates as “necessary for economic justice in an industrializing nation.”
During the New Deal, Franklin Delano Roosevelt openly endorsed this egalitarian use of taxes to curb “great accumulations of wealth” and reduce the country’s towering levels of inequality. In 1936, the top marginal rate was increased to 79 percent and during the war it reached 94 percent. These rates, which Zucman and Saez have aptly described as “quasi-confiscatory,” only applied to those making the equivalent of several millions of dollars in income today and were largely designed to “reduce the inequality of pre-tax income,” which they did."