> The only reason to tax the rich as far as economic stimulation goes, is if you believe the Government can do better with the money than the market can. I thi

> The only reason to tax the rich as far as economic stimulation goes, is if you believe the Government can do better with the money than the market can. I think this is a very important point. There's been an important ongoing debate in some European countries, on taxes paid vs. benefits provided by the state. It's a natural tendency for some kinds of state to become increasingly dependent on tax money, be it through self-expansion (hiring more and more public servants) or provision of extra benefits to society. While this was no big deal in the post-WWII, it has become increasingly relevant with the consequent improvements in life expectancy and decrease in birth rate. OTOH, the market is purely profit-oriented and profit is seldom in agreement with the public interest. "The rich" won't care to pay my unemployment benefits when I lose my job or my hypothetical child's health expenses.