Agony of Defeat
Oh, what a burn. My tax debate with French economist Thomas Piketty was a dead heat, 50-50, for the past four days. Then just as the contest was closing, he pulled ahead to seize victory, 51-49.
The Economist editor described the tightly fought battle:
Chris Edwards got over a strong initial disadvantage to narrow what was originally a strong lead for Mr Piketty to a dead heat, but eventually Mr Piketty has prevailed: but only just—even hours before closing, the vote was split exactly down the middle. One could not have asked for a closer contest: this has been the most closely-fought of our 21 online debates, although it began with a fairly substantial lead for the proposition.
Certainly, the debate revealed high levels of interest in taxation and relative income levels. There were more than 1,100 reader comments posted, making it the “most commented” story on the Economist site for the last 10 days or so. My thanks to all the supportive voters and commenters.
Piketty won the website voting battle, but I don’t think he’ll win the war. Global tax competition has led to large cuts in top tax rates in recent decades, and will continue to exert downward pressure for years to come. However, these are dangerous times as governments press to end financial privacy, to create international tax cartels, and to substitute competition with multinational government power in various other ways.
Vote for Me!
Final statements in my tax debate with economist Thomas Piketty were posted today at the Economist.
I think I’m softening Piketty up, as he reiterated that a 60% tax on high earners might be OK, rather than the 80% that he suggested.
The voting from readers has been locked at 50%/50% for days. So it is important that you register your vote by the end of tomorrow before the magazine’s “decision” on the winner Friday.
New at Cato
Here are a few highlights from Cato Today, a daily email from the Cato Institute. You can subscribe here.
- Malou Innocent argues that the United States should not increase its troop presence in Pakistan in a new Cato Policy Analysis.
- Doug Bandow discusses Tax Freedom Day in the American Spectator.
- Watch Tucker Carlson discuss whether a president should blame problems on past administrations on Fox News.
- Chris Edwards is finishing his live debate with French economist Thomas Piketty over whether the rich should pay higher tax rates. Readers decide who wins, so don’t miss the chance to cast your vote.
- Join the Cato Institute Wednesday, April 15 to hear James Tooley, author of The Beautiful Tree:A Personal Journey Into How the World’s Poorest People Are Educating Themselves, discuss successful ways to educate the world’s poor.
Piketty Tax Battle: Round Two
The Economist has posted rebuttals to first-round arguments in my tax debate with French economist Thomas Piketty. Piketty seems to think that everyone with a high income has a “grabbing hand” that comes at someone else’s expense.
The debate over tax rates on the rich is important, but Piketty is important in himself because he is widely cited in the media and elsewhere as if he were a neutral authority. For example, President Obama’s budget featured a chart showing that the top 1 percent of earners have greatly increased their share of national income over the decades, using Piketty’s numbers.
But Alan Reynolds has found serious flaws in Piketty’s calculations. Piketty bases his calculations on tax return data, but reported income under the federal income tax has changed greatly over time.
The bottom line is to be suspicious when you see a chart on income trends that is sourced to this advocate of 80 percent tax rates.
Who’s Blogging about Cato
Are you blogging about Cato? Let us know. Send a link our way @catoinstitute or email cmoody@cato.org
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- Georgia Examiner writer and blogger Jason Pye offered his thoughts on Ilya Shapiro’s post about the “Jefferson 1.”
- Wes Messamore finished his list of the top 100 libertarian blogs and Web sites.
- Free Marketeros editor James Barcia linked to Juan Carlos Hildalgo’s new report on the success of El Salvador’s free market reforms.
- Health care writer John Goodman discussed John Cochrane’s recent Policy Analysis on market-based strategies to improve health security.
- At NRO’s The Corner, Veronique de Rugy is following the debate between Cato scholar Chris Edwards and French economist Thomas Piketty over whether the rich should pay higher taxes.
Majorities Favor Soaking the Rich
We are in the middle of a nine-day debate at The Economist on the proposition that “the rich should pay higher taxes.” I’m on the “no” side of the proposition. French economist Thomas Piketty is on the “yes” side, arguing that we ought to impose an 80 percent tax on those with the highest incomes.
I need help! Thus far, readers are favoring Piketty 57 percent to 43 percent. Please go to the site and register your vote.
Are website visitors actually reading the statements, or do their votes just reflect their existing political biases? Are they mainly Europeans or Americans? We don’t know, but majorities in favor of 80 percent tax rates does not bode well for economic freedom.
On Friday, Piketty and I post our rebuttals to opening statements, and next week we make closing arguments.
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