Beschreibung:
Earnings inequality has increased for close to twenty years - until, perhaps, a temporary reversal occurred starting in 1997 - and income inequality has almost certainly increased more than earnings inequality. Earnings inequality has increased for a sound economic reason: rising returns to human capital at least in part have been related to technical change. It is patent that governments should encourage, not discourage, technology and the resulting high returns to human capital. How taxes should be levied on high earnings (relative to low earnings) and on earned income (relative to property income) is beyond the scope of this paper. But research during the last decade or two should have convinced everyone that all taxes affect economic behavior