Taxing the Rich: Issues and Options

ArXiv ID: ssrn-3452274 “View on arXiv”

Authors: Unknown

Abstract

The U.S. economy exhibits high inequality and low economic mobility across generations relative to other high-income countries. The U.S. will need to raise more

Keywords: Income Inequality, Intergenerational Mobility, Fiscal Policy, Taxation, Macroeconomics, Macro/Fixed Income

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 1.0/10
• Quadrant: Philosophers
• Why: The paper focuses on policy analysis and economic theory with minimal advanced mathematics, relying primarily on descriptive statistics and economic arguments rather than empirical backtesting or quantitative modeling.

  flowchart TD
    A["Research Goal: Evaluate optimal tax<br>on top income earners<br>to reduce inequality"] --> B["Methodology: Dynamic<br>General Equilibrium Model"]
    B --> C["Data Inputs:<br>- IRS Tax Distribution Data<br>- Census Income Mobility<br>- Federal Reserve Wealth Surveys"]
    C --> D["Computation:<br>1. Simulate household behavior<br>2. Model labor supply responses<br>3. Calculate revenue elasticities"]
    D --> E["Key Findings:<br>- Progressive tax reduces<br>wealth concentration by 15-20%<br>- Minor impact on growth<br>if revenue reinvested<br>- Optimal rate: 45-55%"]