Monday, August 16, 2010

Oh, I Think You'd Be Surprised

Proposing to create a new tax bracket for the ultra-rich (annual income of $1 million and above), James Surowiecki writes:
There would be political advantages, too: the reform could actually make tax hikes on top earners more popular. Critics like to describe tax hikes as hurting small business, because small-business owners make up a sizable percentage of people in the top two brackets and because small-business owners, unlike Wall Street traders, are popular on Main Street. It would be harder to mount a defense of millionaires, which may be why this year a Quinnipiac poll found overwhelming support, even among Republicans, for a millionaire tax.

I think you drastically underestimate the ability of the political classes to mount defenses of policies benefiting the hyper-rich.

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