Economist Thomas Piketty’s new book, Capital in the Twenty-First Century, is a bestseller that’s getting rave reviews in the media. It argues that economic inequality is a terrible evil, and it prescribes tax rates as high as 80 percent as a remedy.
If we follow his recommendations, Heritage Foundation chief economist Steve Moore warns, we’d end up making everyone poorer and returning to a 1970s-style economy:
That the left has come full circle to celebrating the anti-growth tax rates of the bad old days of the 1970s is a depressing reminder that liberals really haven’t learned much of anything over the past several decades. In the Carter years, the combination of high tax rates and high inflation pushed Americans into ever-higher tax brackets, which contributed to the worst losses in middle-class incomes since the Great Depression.
If America is foolish enough to follow Mr. Piketty’s advice, which is based purely on class warfare and envy, we may very well re-create the 1970s economic results all over again.
Do you think we need higher taxes to combat inequality?