Tyler Cowen Gives Some Love
...to Stephen Williamson, who worries about taxing the rich too much.
Tax people at a higher rate, and some drop out of the labor force.
2. Taxes affect occupational choice. Some work by Manuelli/Seshadri/Shin says that the effect of taxes on human capital is big time. Why do I want to undertake a costly and risky investment for a very small payoff?
3. Entepreneurial activity has to be very elastic with respect to tax rates at the top end.
Tyler's usually docile commenters call "bullshit" on a massive scale.