During the late 1960s, the top marginal personal income tax rate on dividends, received by British investors,

Question:

During the late 1960s, the top marginal personal income tax rate on dividends, received by British investors, reached 98 percent, yet pay-outs actually increased. How can you justify this empirical fact?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...