If low tax rates on top earners caused economic growth, why has economic growth fallen since top tax rates were cut?
And the top tax rate reported is not in fact what most of the very rich really pay, since their income is taxed differently than earned income.
Why the 1% should pay tax at 80% | Emmanuel Saez and Thomas Piketty | Comment is free | theguardian.com
I firmly believe that taxing the top earners at a much higher rate gives them an incentive to make sure that their employees are well paid and productive, and not just treat them like "human capital." After all, if the rich pay a very high marginal tax on very high earnings, they have less incentive to grab a very large part of the earnings of a firm, leaving the workers with little.
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