The 70% Solution

Today's super rich command and control over resources that they are effectively satiated. So, when we calculate what their tax rate should be, we should not consider the effect on their happiness, but rather on the well-being of everyone else.

BERKELEY – Via a circuitous Internet chain – Paul Krugman of Princeton University quoting Mark Thoma of the University of Oregon reading the Journal of Economic Perspectives – I got a copy of an article written by Emmanuel Saez, whose office is 50 feet from mine, on the same corridor, and the Nobel laureate economist Peter Diamond. Saez and Diamond argue that the right marginal tax rate for North Atlantic societies to impose on their richest citizens is 70%.