Dec 7, 2012

Geoffrey R. Stone: The Perils of Income Inequality

Geoffrey R. Stone: The Perils of Income Inequality:
"Unfortunately, over the past half-century a succession of Republican administrations, representing the same constituents as those who opposed the income tax a century ago, has lowered the marginal tax rate on the wealthiest Americans from 90 percent under President Eisenhower, to 70 percent under President Nixon, to 50 percent under President Reagan, to 35 percent under President George W. Bush. The consequent income inequality, so celebrated today by Mitt Romney, once again represents a clear and present danger to American democracy."

In contrast to USA, Singaporeans are not worried. The top tax rate is 20%. There is no tax on dividend or capital gain and there is zero estate duty. Lee Hsien Loong says a higher Gini coefficient could be even better, "'Supposing the world's richest man, Carlos Slim, comes to live in Singapore. The Gini coefficient will get worse. But I think Singapore will be better off. Even for the lower-income Singaporeans, it will be better."

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