The Dreaded New York Times has another article by the dreaded Paul Krugman titled The Economics of Soaking the Rich. He starts out all right by supporting taxing the rich, but he quickly descends into his typical economic myopia when he goes on to say the following:
Or to put it a bit more succinctly, when taxing the rich, all we should care about is how much revenue we raise. The optimal tax rate on people with very high incomes is the rate that raises the maximum possible revenue.
Krugman fails to account for the damage that the rich do to the economy with some of the “work” that they do. Part of the reason for taxing the rich heavily is to get the money out of their hands to stop them from doing the damage that they do.
I see no signs that Krugman is paying attention to the writings of Michael Hudson. I have posted about Hudson many times in cluding all the articles mentioning his book Killing the Host. One article in particular lists some of Hudson’s suggestions – Ten Reforms to Restore Industrial Prosperity.