Remarkably of the hundreds of emails we received in reaction to our op-ed, almost no one questioned Brandeis’s idea that we can have great concentrations of wealth, or democracy but not both. People questioned other aspects of our proposal, asking questions like (1) how would it work in a world of income bunching; (2) would people still have the incentive to work hard; and (2) is it fair to have very high tax rates on the affluent.
Our last post talked about alternative potential triggers. Here we tackle some more detailed questions about implementation including how to trade off different kinds of distortions. [emphasis added]
Read the rest at FreakonomicsOf Lags and Caps: Possible Implementations of a Brandeis Tax
by Ian Ayres
Interesting that no one has questioned the premise that wealth/income concentration is incompatible with liberal democracy.