Society, Wealth, and Taxes

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Pure Notes

tentative fact: the economy slows down when the top earners are taxed heavily (in modern times, this is determined primarily by capital gains tax)

low tax argument: prima facia evidence that the rich should enjoy low taxes as a pragmatic step; even granting that such a structure may not be equitable, it is better for everyone to have a strong economy even if taxation itself is unfair

high tax argument: the problem the underlying wealth retention; because the high earners also represent high concentrations of capital--and they can afford to decrease their economic activity--when taxes are high and activity in this area slows, you have a situation where societies capital is held for ransom. It's a kind of blackmail. The larger problem is the retention of wealth.