Re:Modeling a Wealth Tax
by codekansas on Tuesday August 18, 2020 @03:06PM
(#24202878)
There's a cool related video of Greg Mankiw [0]. He talked about two "redistribution" schemes:
1. $1000 per month to those with zero income, phased out at 20c / dollar extra income, financed by 20% tax on all income above $60k
2. Transfer of $1000 per month to everyone, financed by 20% flat tax on income
Apparently a group of Harvard students he asked were strongly in favor of the former, without realizing that the two plans are equivalent. It's all about framing.
1. $1000 per month to those with zero income, phased out at 20c / dollar extra income, financed by 20% tax on all income above $60k 2. Transfer of $1000 per month to everyone, financed by 20% flat tax on income
Apparently a group of Harvard students he asked were strongly in favor of the former, without realizing that the two plans are equivalent. It's all about framing.
[0] https://www.youtube.com/watch?v=4cL8kM0fXQc