Monday, April 16, 2012
Robert Reich: Taxing the Wealthy Essential to Growing Economy
Robert Reich attacks the perceived tradeoff between increasing the progressiveness of the income tax and economic growth. tax and economic growth. I would nitpick that he fails to note the difference in real income between the lower end of the top marginal tax rate in the post-WWII era and now (~$2 million vs. ~$400,000 in today's money). I also wonder whether the comparison with Germany is truly apt, given the broader state of the Eurozone. However, I can't help but agree with the basic point: progressive taxation used to provide public goods and stimulate the middle class will benefit the economy more than having surplus wealth concentrated in the hands of a few speculators and investors.