In line with what I wrote in an earlier post, this study examines the effect of top income tax rates on economic growth and income inequality. I urge you to read the summary, which is about two pages, as the whole article is a bit long.
As I would expect, tax rates on top earners seem to have insignificant effects on savings, investment and consumption. They do however, have an effect on income inequality. So all the G.O.P. rhetoric about how increasing income/capital gains taxes on America’s wealthiest would cause the economy to stall is, to put it as nicely as possible, bullshit. It is nothing more than wealthy people using their most abundant resource–their wealth–to try to shape political discourse and policy.
The sustainability of the American Dream requires this false ideology to be exposed and thrown away like the trash it is.