Having said that one would think that it is a good idea to tax the rich very heavily and not worry too much about the growth consequences. After all if the rich benefit the most from growth why do you want to grow. It's not that the rich benefit the most it's that the rich benefit alone and the middle and lower people scarcely benefit at all.
In fact, it is probably the case that balancing the budget should be the very least that is achieved. Often by taxing the rich one creates scope for the nouveau rich, those who aspire to become rich but whose progress is hampered by very rich. The rich can slow down the rate of economic development, buy out promising technologies and close down competition. It's important thus to tax the rich the most, not just a little bit, but a lot!
What does the American economist Paul Krugman have to say about America's taxing of the rich?
http://www.nytimes.com/2010/08/23/opinion/23krugman.html?src=me&ref=general
Will ye no think kindly on those who would be your friends! May the sun shine with your thoughts, today, and happiness grow in your heart! May you allow yourself some peace of mind.
