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Those rates were basically fiction. All they led to (and the only reason they could be levied) was a huge system of fake on-paper money-losing schemes. People would arrange all sorts of business ventures and other schemes to appear to be losing money, and thus reduce their taxes.

The actual tax receipts as a percentage of income were very close to what they are today.

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Reagan's tax deal with Congress was eliminate the tax shelters in exchange for lowing the top rate. The former has been forgotten.

The main goal of the 1986 tax deal was simplification, eliminating tax shelters was inherent to the plan, not something traded for lower rates. If there was any exchange for lower top rates, it was raising corporate and capital gains taxes to keep the plan revenue neutral.

Wealthy people do not care about tax simplification, they care about how much in tax they have to pay. So the trade was lower tax rates overall in exchange for giving up the low tax rates that made tax shelters extremely attractive.

Your position underestimates how pervasive tax avoidance using shelters was at the time. The wealthy were never going to give that up for simplification, after all, they could have simplified their taxes anyway by not investing in shelters if that was their issue.

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