No, it didn't, the distribution of wealth just intensified.  More $, more taxes.<p>The % of income paid as taxes by those people went down.  As a matter of fact, people in the top tax brackets typically pay a lower % of their income in taxes than their secretaries.<p>EDIT:  Also, where does this persistent myth that "half of all people pay no federal income taxes" come from?  They do pay federal income tax.  When I had summer jobs I paid income tax beyond FICA.  When I made small money right out of college I paid income tax beyond FICA.  I'm guessing it's the same story for you, as well.  Poor memory?