- Quotables March 28
Paul Krugman points out that proposals to introduce higher taxes on the rich — like the Buffett rule — have received serious pushback from conservatives:
As inequality has become an increasingly prominent issue in American discourse, there has been furious pushback from the right. Some conservatives argue that focusing on inequality is unwise, that taxing high incomes will cripple economic growth. Some argue that it's unfair, that people should be allowed to keep what they earn. And some argue that it's un-American — that we've always celebrated those who achieve wealth, and that it violates our national tradition to suggest that some people control too large a share of the wealth. [The New York Times]
But, as Krugman rightly points out, high taxes on the rich are hardly un-American. He points to Theodore Roosevelt and Irving Fisher as examples of the fact that "in the early 20th century, many leading Americans warned about the dangers of extreme wealth concentration, and urged that tax policy be used to limit the growth of great fortunes."
In fact, as Thomas Piketty's Capital in the 21st Century points out, "confiscatory taxation of excessive incomes — that is, taxation whose goal was to reduce income and wealth disparities, rather than to raise money — was an American invention."
This shouldn't really be very surprising. America was founded by a group of men deeply distrustful of monarchies, aristocracies, concentrated wealth, and inherited privilege, and who enacted laws to prevent wealth from concentrating in too few hands.
As Steven Budiansky noted in 2010:
With Thomas Jefferson taking the lead in the Virginia legislature in 1777, every Revolutionary state government abolished the laws of primogeniture and entail that had served to perpetuate the concentration of inherited property. Jefferson cited Adam Smith, the hero of free market capitalists everywhere, as the source of his conviction that (as Smith wrote, and Jefferson closely echoed in his own words), "A power to dispose of estates forever is manifestly absurd. The earth and the fullness of it belongs to every generation, and the preceding one can have no right to bind it up from posterity. Such extension of property is quite unnatural." Smith said: "There is no point more difficult to account for than the right we conceive men to have to dispose of their goods after death." [Liberal Curmudgeon]- -
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