> Is there a strong correlation between higher taxes and decreasing wealth inequality?
A sufficiently strong progressive taxation regime would obviously have this effect, assuming you could actually enforce it. For example, if you taxed 99% of earnings above $10 million that would greatly reduce the wealth of the ultra-wealthy, even without taking into account how that money was redistributed.
That's obviously an extreme, and I'm not suggesting we do exactly that. But 80% tax rates were common as recently as the late 20th century, and coincidentally there were much lower rates of wealth inequality during this time.
Well I think we all understand the basic arithmetic; that's not what's in dispute.
The question is,
> even without taking into account how that money was redistributed.
...if you're taking money from people earning $11 million, and giving it instead of the military and prison industrial complexes, obviously you've concentrated, rather than diluting power.
I think there's a real question about how possible it is for a taxation regime to ever have a progressive effect inside the belly of empire.
A sufficiently strong progressive taxation regime would obviously have this effect, assuming you could actually enforce it. For example, if you taxed 99% of earnings above $10 million that would greatly reduce the wealth of the ultra-wealthy, even without taking into account how that money was redistributed.
That's obviously an extreme, and I'm not suggesting we do exactly that. But 80% tax rates were common as recently as the late 20th century, and coincidentally there were much lower rates of wealth inequality during this time.