The Justice of Tax Progressivity

In all the voluminous academic and political debates about optimal taxation, I think one argument should get considerably more attention.  People who have higher earnings derive greater benefits from government.  Social stability, provided in the form of police, defense, and the legal system, preserves property rights and makes productive activity and wealth accumulation possible.  For this, the high-income and high-wealth people who benefit most should pay most.

Before you all go back to talking about incentive effects of taxation, do recall that reference points may matter, and talking about fair benchmarks may help to set them justly.

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