"Gentlemen Prefer Bonds" is a famous quote in the financial services. It’s attributed to Andrew Mellon, a wealthy financier and banker from the early to mid 1900’s. Mr. Mellon has a fascinating story actually – he served as the Secretary of the Treasury under three different U.S. Presidents and is widely remembered for seemingly favouring the wealthy in lieu of the middle and lower class by cutting taxes for higher income earners tremendously.
However, his rationale was that the wealthy were being taxed so egregiously that they put all their money into tax-free bonds, thereby avoiding paying tax at all. Once the tax rates for the wealthy were reduced, the tax revenues to the country actually increased markedly! Such was his plan all along.
Perhaps his famous comment was a testament to this state of affairs of the rich before the tax reforms he spearheaded were introduced? The saying was later perverted by humourists into "Gentlemen prefer blondes" and later to "Gentlemen prefer blondes, but take what they can get." :)
The Mellon family name is widely recognized throughout the banking world – and their interests are far reaching. If you’ve heard of CIBC Mellon, it is indeed from the same lineage. Canegie Mellon? Same family. :)
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Good historical read. Thanks for sharing!
Best Wishes,
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