Something I don't understand that is sure to get me flamed

[tim]

So there's this idea that if we increase taxes on the rich, then rich people will stop working so hard (that the rich work hard is already questionable, but let's go with it) and, I don't know, stop producing all the social goods that rich people produce.

I mean, I think it would be great if just increasing taxes, by, say, 2% on household income above $500,000/year would make some of those high earners say, "Goshdarnit, it's not worth it for me to earn this much money if the government is just going to take it away. I better get a job teaching in an inner-city elementary school instead, brb." But somehow, I don't think that's going to happen.

Is it *really* that easy to stop people from being greedy? I'm not sure greed would deserve its deadly-sin status if it was that easy to eradicate.

And while I'm at it, what's up with accusations of "class warfare"? Rich people have been waging war on everyone else since, oh, whenever it was that some people started being rich. (In fact, that's how you get rich in the first place.) The rest of it is just class self-defense.

Comments

[sethg]

One thing that’s under-emphasized in this kind of discussion is that as long as the government is spending more than it takes in, we’re just trading lower taxes now for higher taxes later. This may be the right thing to do in the short run—<include keynes-general-theory.h>—but I’m not sure it can be sustained indefinitely. Also note that about 10% of government spending is interest payments on the national debt, and the vast majority of the people (or institutions) that hold that debt are not exactly poor.