The $47T Heist

From the article:

> “Trends in Income,” which hasn’t yet been peer reviewed, estimates what would have happened in the U.S. if the 1945-1975 tax regime had continued until 2018.

This isn't what the paper says though. From the abstract:

> [We] estimate that aggregate income for the population below the 90th percentile over this time period would have been $2.5 trillion (67 percent) higher in 2018 had income growth since 1975 remained as equitable as it was in the first two post-War decades. From 1975 to 2018, the difference between the aggregate taxable income for those below the 90th percentile and the equitable growth counterfactual totals $47 trillion.

The paper doesn't say anything about the cause of income inequality or attribute it to tax policy or anything. Am I missing something? It seems like the article author grossly misinterpreted the paper.

(Disclaimer: not agreeing with, or disagreeing with the article. Just pointing out that it's proposition is false.)

> “Could we ask for our $47 trillion back? Not directly, but we could certainly tax the 1 per cent at 90 per cent or higher for the next century or two, and not feel guilty about it. Their wealth came from us, not their own brains and hard work. We might remind them that the Saudis cut off pickpockets’ right hands, and billionaires in China who get out of line get serious jail time.”

i’m down for a return of the 90% top marginal tax rate. better yet, make the tax function continuous rather than a step function to remove the temptation to try to game the system.