But don't high taxes on wealthy people like me reduce our incentive to work hard and create new jobs? The answer is no. Banerjee and Duflo found no evidence that people at the top of the income distribution change their behavior in ways that affect the overall rate of economic growth. "In a policy world that has mostly abandoned reason … let's be clear: Tax cuts for the wealthy do not produce economic growth." Banerjee and Duflo have given me even more reason to advocate, as I did in this recent post, for a tax system in which the rich pay more taxes than we currently do.
https://www.gatesnotes.com/Books/Good-Economics-for-Hard-Times
_- Steve
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