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https://www.nytimes.com/2019/01/05/opinion/alexandria-ocasio-cortez-tax-policy-dance.html>
"Diminishing marginal utility is the common-sense notion that an extra dollar
is worth a lot less in satisfaction to people with very high incomes than to
those with low incomes. Give a family with an annual income of $20,000 an extra
$1,000 and it will make a big difference to their lives. Give a guy who makes
$1 million an extra thousand and he’ll barely notice it.
What this implies for economic policy is that we shouldn’t care what a policy
does to the incomes of the very rich. A policy that makes the rich a bit poorer
will affect only a handful of people, and will barely affect their life
satisfaction, since they will still be able to buy whatever they want."
Via Andres Soolo, who wrote: "Krugman explains why high marginal tax rates make
socioeconomic sense, unlike high low-bracket tax rates."
Cheers,
*** Xanni ***
