by Jerome a Paris
Fri Jan 20th, 2012 at 05:50:48 AM EST
Someone sent me this web page about the French 1% and this generated the following comment:
If you work for 40 years with an income putting you in the top 1% of earners, and save half of it, you still won't be in the top 1% by wealth at the end. But if you are in the top 1% by wealth and earn 5% on that wealth, you are in the top 1% of income without any work.
The conclusion is that wealth taxes, and inheritance taxes in particular, are especially important. High marginal income taxes are necessary to avoid having people betting (someone else's) house to make it big quickly, but wealth taxes are actually more relevant to fight inequality.