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Channel: Taxing Problem May Not be That Taxing
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Win Win - Not Damned If You Do, Not Damned If You Don't

Nice takedown of the usual dumbed down zero sum arguments about how taxes on the rich can't possibly finance much of anything. Rather than the usual "damned if you do tax the rich or damned if you...

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doesn't have a precedent in Europe though

There is a lot of social spending in Scandinavia but someone at the median income level also pays a lot of tax. Generally an extensive welfare state needs a VAT to remain funded. The system is already...

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The problem is that

our government is NOT revenue constrained. Right now the government needs to be running higher deficits, and if anything should cut taxes on the 98% increasing their take home pay. Raising taxes on the...

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Scandinavia

Current taxes are based on low GINIs of the past. As their GINIs drift upward, so will the rates on the wealthy. - David

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...

The analysis does not go far enough into contingencies. If inequality continues to grow and the middle class continues to be impoverished no one will be able to buy products and services, profits will...

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Why is it always assumed

@skeptonomist Why is it always assumed that inequality grows because marginal tax rates are lower? Inequality went up under Clinton despite an increase in marginal rates, and other taxes like removal...

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inequality is clearly linked to technological boom

As with the industrial revolution, when inequality soared till the 1920s, this time inequality has soared while incomes have risen across the board. One would expect that as things have slowed since...

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...

Mcwop: I don't assume that inequality is due only to tax rates directly - Dean has a long list of policies that have promoted inequality - see his books. As I said the more money the rich can take...

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