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An argument I've heard for income tax progressivity is that the very wealthy have far more to lose if the state crumbled and society devolved into a state of na
by theseatoms 11y ago
An argument I've heard for income tax progressivity is that the very wealthy have far more to lose if the state crumbled and society devolved into a state of nature.
In other words, the state, by upholding the rule of law (particularly property law), is providing the ultra wealthy with a service of far greater value than that which it provides those with lower wealth/income.
- prostoalex 11y agoThose who are wealthy are generally not high-income (at least they can heavily tweak their income by using asset-backed loans and accrue capital gains only when it's beneficial). Those who are high income in California are generally not wealthy (as opposed to everyone's favorite high income poster boy - the NY hedge fund manager), but are subjects to windfall effect - a few years of work at below market wages in hopes for a giant payback (royalties in Hollywood, stock options of a successful tech startup in the Valley).