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Noah Smith @Noahpinion
, 6 tweets, 2 min read Read on Twitter
Thread about why very high tax rates on very rich people don't raise much revenue (or reduce inequality much, even within the top tier).

Our system has a million loopholes. Closing them is more important than raising top rates.
That's not to say there's a trade-off between raising the top rate and closing loopholes! They are complements, not substitutes.

But if you just raise the top rate without closing loopholes, you'll likely be disappointed.
The fact is, raising effective taxes on the very rich will require a comprehensive sustained push on a large number of policy fronts. There is not going to be one silver bullet.
And remember, even the New Deal Democrats, with their famed 90% top tax rates, didn't manage to garnish much more of the nation's income than we do now.…

Increasing tax revenue as a percent of GDP will take a huge comprehensive policy effort.
As for reducing inequality as a goal in and of itself (as opposed to raising revenue), remember that raising taxes on people making over $10M mainly reduces inequality among the top tier...
Anyway, just some things to think about, now that everyone is thinking about income taxes again!

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