University of California professor Emmanuel Saez, Thomas Piketty of the Paris School of Economics, and Stefanie Stantcheva of the MIT Department of Economics, carefully taking into account the incentive effects of higher taxation and the societal benefits of reducing inequality, have estimated that the tax rate at the top should be around 70 percent-what it was before President Reagan started his campaign for the rich.68 But
Economists Emmanuel Saez, Thomas Piketty, and Stefanie Stantcheva argue that a top tax rate of 70 percent would be beneficial for society, as it aligns with historical rates prior to President Reagan's tax reforms. They emphasize the importance of balancing the negative impact of higher taxes with the advantages of reduced inequality, suggesting that a fair tax system can support social welfare while maintaining economic incentives.
In his book "The Price of Inequality," author Joseph E. Stiglitz discusses the detrimental effects of growing inequality in society. He highlights how persistent disparities in wealth can undermine economic stability and hinder future growth, advocating for tax policies that would reduce these gaps and promote a more equitable society.
