High marginal tax rates are bad only if you assume that the highest earners are most productive. But are they? Don’t forget that wealth is also self-perpetuating. If I earned $1 million—whether by hard work, or by luck—then I could live comfortably off the interest for the rest of my life. In terms of satisfying my basic needs, I would have zero incentive to continue being productive. If I live off the interest, am I somehow being productive by proxy of my investment? That’s another question.
High marginal tax rates are bad only if you assume that the highest earners are most productive. But are they? Don’t forget that wealth is also self-perpetuating. If I earned $1 million—whether by hard work, or by luck—then I could live comfortably off the interest for the rest of my life. In terms of satisfying my basic needs, I would have zero incentive to continue being productive. If I live off the interest, am I somehow being productive by proxy of my investment? That’s another question.