Sunday, September 03, 2006

A discussion on the Income Distirbution

From Brad Delong's Blog:

The first comment from readers seems on target to me. If we wish to encourage innovation, but discourage "spiteful" consumption, then using a luxury tax, instead of a more progressive income tax, makes sense. But does this mean that people would have to pay a tax for going to Greg Mankiw's high tuition university, but not pay that tax for going to Brad Delong's low-tuition university?

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