Robin Hood Tax May Not Work

Returning to the era when the US’ progressive tax rate had higher rates for the higher incomes sounds like a good solution to income and wealth inequality. A new study suggests that higher taxes for the rich redistributed to the poor wouldn’t change income inequality by much. The rich would feel an increase in their taxes (as much as $110,968 and more), and the poor would benefit from the redistribution (because $1,760 is a lot to someone who has nothing).

One consideration is the other large tax revenue source that has shrunk dramatically, corporate income that is largely stored off-shore.  (Though this study did not reflect that, it has been documented elsewhere.)

(Click on the table for the link.)

“New Research Shows Raising The Top Income Tax Rate Won’t Reduce Inequality” – Brookings