Not Class Warfare, Optimal Taxation

Today's column yesteryear Paul Krugman is classic Paul: It takes a policy favored yesteryear the right, attributes the near vile motives to those who advance the policy, in addition to ignores all the reasonable arguments inwards favor of it.

In this case, the trial is the reduction inwards uppercase taxes during the George W. Bush administration.  Paul says that the destination hither was "defending the oligarchy's interests."

Really? As Paul good knows, at that topographic point is a large literature inwards economics suggesting that an optimal taxation arrangement imposes much lower taxes on uppercase income than on wage income (or consumption).  I tin personally attest that President Bush's economical advisers were good aware of this literature.

Note that when Barack Obama ran for President inwards 2008, he campaigned on alone a pocket-size increase inwards the taxation charge per unit of measurement on dividends in addition to uppercase gains.  He did non propose raising the charge per unit of measurement on this income to the charge per unit of measurement on ordinary income.  Is this because Barack Obama also favors the oligarchy, or is it because his advisers also understood the instance against high uppercase taxation?
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