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Bloomberg Opinion: Raising taxes on the rich could provide 'an emotional lift for society as a whole'

Bloomberg Opinion has had some hot takes recently, and this one seems primed to give 2020 Democratic presidential candidate Elizabeth Warren a boost. She’s all for a wealth tax on the “tippy-top” of earners, thinking it could somehow pay for free healthcare, free childcare, free college, and more. What she won’t say is if Medicare for All would require a middle-class tax hike.

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Bloomberg has some good news for her: research says taxing the very wealthy could provide “an emotional lift” to society as a whole.

Stephen Mimm reports:

… raising taxes on the wealthy could deliver something meaningful that millions of Americans would feel rather quickly: happiness.

Recent research found that progressive taxes may make the average citizen happier and more content. In the course of their study, psychologists Shigehiro Oishi and Kostadin Kushlev of the University of Virginia and Ulrich Schimmack of the University of Toronto eschewed the usual debate about tax increases: Are they bad for economic growth? Instead, they focused on a more emotional one: Do Americans feel happier – and experience a greater sense of fairness – under more progressive taxation?

What did their research tell them about the Republican tax cuts letting Americans keep more of what they earn?

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If society as a whole benefits from this “emotional lift,” what about the rich who are getting soaked? “While their happiness levels showed no signs of increasing during times of progressive taxes, the wealthy did not become significantly unhappy, either” … “poorer citizens benefit without a notable loss in happiness among the wealthiest citizens.”


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