There seems to be an assumption that if you tax the rich, they won't be motivated to grow the pie. I don't think that that's true. I don't think people would sa

There seems to be an assumption that if you tax the rich, they won't be motivated to grow the pie. I don't think that that's true. I don't think people would say, "Tax rates doubled. Now I only expect to make $100M instead of $200M. It's not worth it any more; I'm quitting." Here's how I see it: A: Double taxes; 10% smaller pie. B: Keep taxes; inequality grows. C: Increase taxes such that innovation stops. Graham seems to be arguing that B is better than C. I agree, but he doesn't seem to address A.