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Inequality

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If the candidates’ solutions for ending corporate inversions seem unnecessarily complex, their cure for income inequality is unlikely to produce the desired results. In a recent Brookings Institution paper entitled, “Would a Significant Increase in the Top Income Tax Rate Substantially Alter Income Inequality?,” economists William G. Gale, Melissa S. Kearney and Peter R. Orszag answer, no. Or, in their own words: “An increase in the top tax rate leads to an almost imperceptible reduction in overall income inequality, even if the additional revenue is explicitly redistributed.”

Via Raising Top Tax Rates Won’t Cure Income Inequality @ Economics21.