>High marginal income tax rates are designed to keep you from building wealth-- the capital-holding classes don't want the competition for assets.

This was my first thought as well when looking at the new Republican tax brackets. They're throwing peanuts at the poor in the form of a minuscule tax break, while simultaneously cutting off their ability to ever actually build wealth by raising the middle rates.

I actually just had this thought the other day. It used to be that most people didn't even pay income tax. I realized that income tax is like "regulatory capture" for the wealthy and acts as a barrier from the poor/middle class from moving up. If we really want to touch the rich, we would have to have more capital gains tax, wealth tax, inheritance tax etc.

That's because income tax for workers is a tax on revenue. The rich are taxed on capital gains - which is a tax on profit.

As it turns out, getting taxed on revenue is far more punishing.

High marginal tax rates create a major barrier for building wealth.