Hoisted from Comments: Who Should Undertake the Social Function of Writing Papers in Empirical Finance?

Hoisted from Comments: d2 is amazed at the antics of the colonials:

James Fallows on the Whinging Rich, as Exemplified by University of Chicago Law Professor Todd Henderson: dsquared said...:

Good Lord.

I've occasionally said in the past that one of the great things about America is that it's a country where a person can make a six figure income while still not understanding the concept of a marginal tax rate. But I really do think that the social function of writing working papers in empirical finance probably ought to be left to those who do.

And, let it be said, the University of Chicago will tenure you with you still not understanding the concept of a marginal tax rate...

John Scalzi has a somewhat different reaction:

Tax Frenzies and How to Hose Them Down: A question in e-mail based on all the recent “rich people feeling not rich” nonsense, and the associated commentary online:

Why is it that the people freaking out the most about taxes on the rich are the ones who don’t seem to know how the tax code works?

The answer is in the question: Because they don’t know how the tax code works. The major failing seems to be an incomprehension regarding marginal tax rates, but people also seem to fall down on the matter of taxable income vs. gross income (i.e. how deductions can work for you!), how to apply tax credits, and other various and fairly basic aspects of the tax code here in the US.

If you don’t know that stuff — if you basically wander through your life thinking the government taxes all of your income based on the highest possible percentage — then I suppose it’s no wonder you freak out. But it also kind of makes you the financial equivalent of the people who think that Darwin said we are all descended from monkeys, or that the Bible says “God helps those who help themselves.” In short, it means you’re a bit ignorant. You should stop being that. It’s easily correctable. In any event, at some point in time, real live grown-ups should understand the concept of marginal rates. It’s not that difficult to grasp.

There is another answer as well, which can be paired with the above or stand on its own, and it’s that there’s a certain sort of person who believes that all taxation (or all taxation outside of one or two very specific things of which they approve) is theft. Naturally that sort of person will fly to the defense of any who bleat about their taxes being too high, even if in point of fact, the wealthy in the US are currently being taxed at historically low rates (“but they’re still too high!”).

I really don’t know what you do about the “taxes are theft” crowd, except possibly enter a gambling pool regarding just how long after their no-tax utopia comes true that their generally white, generally entitled, generally soft and pudgy asses are turned into thin strips of Objectivist Jerky by the sort of pitiless sociopath who is actually prepped and ready to live in the world that logically follows these people’s fondest desires. Sorry, guys. I know you all thought you were going to be one of those paying a nickel for your cigarettes in Galt Gulch. That’ll be a fine last thought for you as the starving remnants of the society of takers closes in with their flensing tools...