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Top Income Tax Rate: How's 83% Sound?
- Craiggybear 15y agoWell, during WWII in the UK it was 99%.
- wtvanhest 15y agoI have read a number of papers and heard various opinions on this. The way I think about this is as follows: A person with $300mm in the bank gets only a small gain in utility for every additional dollar they get to possess. (This is also the assumption the paper must make. Assuming that is true (I don't know if it is for sure) 1) the wealthy individual will continue with ambitious persuit of more wealth without any concern for utility. 2) the tax rate wont matter until they feel like the government is spitting them. Assuming those 2 things are true also (again I don't know for sure) the answer that needs to be answered is: Who is more efficient at allocating capital for the good of all society? My opinion: some individuals will be terrible at this, but on average they will be better than elected officials who's skill set is having maximum influence rather than maximum ability to allocate capital.
- gopi 15y agoActually when the top income tax rate was in the 60's in US the capital gain tax was around 25%, so the effective tax rate for the super rich was only 30%. If this authors suggest the capital gain tax should be raised to 83% for the rich then it will simply result in zero tax revenue from the rich. If my capital gain tax rate is 83% i will simply pledge my stocks to the bank and get a loan on it and spend it instead of selling the stocks and pay the tax!