Steve Randy Waldman
@interfluidity.com
Text: Progressive taxation is the single most important policy lever for reducing the power of the rich-not because it raises revenue that can be redistributed via public programs or directly to the poor, but because it imposes a de facto statutory maximum on income or wealth, eliminating the incentive to hoard the economy's resources. Unrestrained capital accumulation is the main reason for economic stagnation and the hollowing out of productive capacity. Conversely, as Piketty's research shows, economic growth is both faster and more equitably distributed—meaning pre-tax top income shares are low—in jurisdictions where effective tax rates at the top are highest. When elites face limits on how much they can take home, they use their dominant position to grab less, so there's more for everyone else.