BOOK REVIEW
Where should society draw the line on extreme wealth? A fresh account sets out the logic and suggests how to redress inequality.
BOOK REVIEW
Where should society draw the line on extreme wealth? A fresh account sets out the logic and suggests how to redress inequality.
If you’re trying to solve inequality through tax policy alone, I wonder what the effect would be of having the top tax rate vary with the Gini coefficient. The idea being that the wealthy can theoretically reduce their tax burden if (and only if) they figure out how to use their economic power to reduce inequality by other means.
How would you pinpoint the reduction of inequality to one person?
You wouldn’t—they’d have to work together. (Something they do seem capable of, when there’s profit in it.)
I don’t understand, so is it like the lower the inequality, lower taxes for the wealthiest?
Right.
If they can proactively reduce inequality, fine; otherwise taxation will do it for them.
Interesting, but wouldn’t the lower tax rates that they earn end up counteracting the gains they made?
Partly—but depending on how much you want to prioritize redistribution vs revenue, you could adjust the tax/Gini curve to set the equilibrium wherever you want.