> This is my main objection to higher marginal tax rates. Sure, people will get around it more or less, but it's incredibly inefficient and wasteful. And that i

> This is my main objection to higher marginal tax rates. Sure, people will get around it more or less, but it's incredibly inefficient and wasteful. And that inefficiency is difficult to measure and has other negative effects on productivity. This is where I disagree completely. A high marginal tax rate incentivizes capital investment into businesses, the modernization of processes, and the hiring of employees whose salaries don't come anywhere close to being in the highest tax brackets. You aren't taxing the unrealized gains when the value of the business increases, but you are taxing the extraction of cash from the business. This is also why wealth taxes are tricky and can lead to unintended consequences if lawmakers are not careful. IE, estate taxes should exist but with a very deliberate structure and rate.