by Paul Krugman · 18 Feb 2010 · 162pp · 51,473 words
cash flow. This has some advantages over annual income as an indicator of a family’s economic position, especially among the rich. Someone with a very high income may be having an unusually good year, while it is not unheard of for wealthy families to have negative income if they make a bad
by Johan Norberg · 31 Aug 2016 · 262pp · 66,800 words
rapidly approaching such incomes. However, there is one important exception: the emissions of carbon dioxide from fossil fuels, which does not begin to decline until very high income levels are attained. This is worrying, since more CO2 and other so-called greenhouse gases in the atmosphere make the global climate warmer and more
by Paul Krugman · 28 Jan 2020 · 446pp · 117,660 words
whose lives have been improved, and in some cases saved, by health reform. In reality, the only people hurt by health reform are Americans with very high incomes, who have seen their taxes go up, and a relatively small number of people who have seen their premiums rise because they’re young and
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good reminder of who is actually insane. The controversy of the moment involves AOC’s advocacy of a tax rate of 70–80 percent on very high incomes, which is obviously crazy, right? I mean, who thinks that makes sense? Only ignorant people like . . . um, Peter Diamond, Nobel laureate in economics and arguably
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and competitive markets. Diminishing marginal utility is the common-sense notion that an extra dollar is worth a lot less in satisfaction to people with very high incomes than to those with low incomes. Give a family with an annual income of $20,000 an extra $1,000 and it will make a
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bit more succinctly, when taxing the rich, all we should care about is how much revenue we raise. The optimal tax rate on people with very high incomes is the rate that raises the maximum possible revenue. And that’s something we can estimate, given evidence on how responsive the pre-tax income
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, it has been apparent for some time that the story is incomplete, because it fails to give a full picture of gains among families with very high incomes. Census numbers are of little use in studying high-income families, for two reasons, one major, one minor. The main problem is the arcane technical
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not count one important source of income for high-income families: capital gains. It is precisely because Census data are weak when it comes to very high incomes that those who use that data usually look no higher than the 95th percentile; that is, the bottom of the top 5 percent. Over the
by Alexandrea J. Ravenelle · 12 Mar 2019 · 349pp · 98,309 words
care, the fact that they came up so readily in our conversation suggests that perhaps a part of him did care. In the United States, very-high-income employers tend to utilize “an American version of the ‘upstairs, downstairs’ segregation of master and servant” that involves a level of distance.24 Yet Randall
by Danny Dorling and Kirsten McClure · 18 May 2020 · 459pp · 138,689 words
.S. government chose to raise less money in taxation and more through borrowing. In particular, top tax rates were reduced from nearly 70 percent on very high incomes in the 1970s to 50 percent in the 1980s, to as low as 25 percent in the early 1990s, and in recent years they have
by Angus Deaton · 15 Mar 2013 · 374pp · 114,660 words
of California at Berkeley.24 It had long been known that the data on incomes from household surveys were not very useful for looking at very high incomes; there are too few such people to show up regularly in nationally representative surveys. (Even if approached at random, they might also be less likely
by Joseph E. Stiglitz · 15 Mar 2015 · 409pp · 125,611 words
the trend was not universal, or inevitable. Over these same years, countries like Chile, Mexico, Greece, Turkey, and Hungary managed to reduce (in some cases very high) income inequality significantly, suggesting that inequality is a product of political and not merely macroeconomic forces. It is not true that inequality is an inevitable byproduct
by Vito Tanzi · 28 Dec 2017
essentially one of correcting the market for “failures,” including, for some economists and politicians, the “failure” of generating excessively uneven income distributions, high unemployment, and very high incomes for some individuals – was replaced, in the mind of a growing number of economists (among whom the most prominent and influential had been Milton Friedman
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the managers, which are often linked to the short run values of the shares. This is one of many examples of how some of the very high incomes (those of the top 1 percent) have become increasingly disconnected from true, genuine market forces, and how compensation arrangements for managers have contributed to making
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pay attention. A negative externality is definitely created for many hard-working but poorly paid workers when they become aware that there are individuals with very high incomes and consumption who are claiming all the country’s growth in income. This happens in democratic societies that keep repeating the notion that all human
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efficiency and the equity of the market, favoring a few over the many. The impact that this problem must have in the determination of some very high incomes is rather obvious. The fact that not all agree with these concerns has been made clear by the people who have been chosen to serve
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has argued that changes in political attitudes vis-à-vis inequality in recent decades that gave more importance to efficiency and made the payment of very high incomes to individuals in some activities socially acceptable are partly to blame for Intellectual Property and Income Distribution 343 the increasing inequality. Those changes in attitudes
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“effort” that receives so much attention by economists. From an equity point of view, this creates an argument for justifying higher marginal tax rates on very high incomes, especially on the part of 354 Termites of the State the income that exceeds some significant multiple of average incomes. For a proposal along that
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some of the aforementioned developments were taking place, the tax systems have been also becoming less progressive and, definitively, more friendly toward individuals who receive very high incomes. The highest marginal tax rates were sharply reduced, making it easier for individuals lucky enough to receive high incomes to keep greater proportions of the
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important. To repeat, most workers are not subjected to the highest tax rate but to lower rates. The highest rate comes into play at a very high income level (in 2016, in the United States, for many at around $400,000). Most workers are far from earning that much money. When we come
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tax competition problem within the United States. Some recent studies have indicated that few taxpayers actually move for this motive. However, if they are truly very-high-income individuals, the moves of even a few of them may still be significant for local governments. Many other countries, and especially Anglo-Saxon countries, also
by Paul Pierson and Jacob S. Hacker · 14 Sep 2010 · 602pp · 120,848 words
is a connection between the previous discussion of tax policy and the current discussion of executive compensation. The sharp fall in true tax rates on very high incomes may have stimulated the rise in executive pay, since the recipients capture so much more of any rise in compensation. Carola Frydman and Raven Saks
by Linda McQuaig · 1 May 2013 · 261pp · 81,802 words
and just society. It is also an important tool for raising revenue. To achieve these goals, high marginal income tax rates should be applied to very high incomes. Our proposed higher rates are clearly much higher than the present top rate of 45 per cent that kicks in at £150,000. We believe
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was introduced by the Labour government in 2010. In addition, we propose adding the two additional rates (60 and 70 per cent, mentioned above) to very high income levels. These additional rates might seem unrealistic in view of the fact that there has been a huge political battle over whether the present top
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’, that early postwar period of widely shared economic prosperity. And now, as then, the higher rates would only apply to a relatively small number of very high-income individuals, who can easily afford to bear a heavier tax burden. In 1975, for instance, when the top rate was 83 per cent, it applied
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