By Rachel Goldfarb, originally published on Next New Deal
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The Latest Debate Over Taxing the Rich Misses One Crucial Fact (The Nation)
Roosevelt Institute Fellow Mike Konczal and Bryce Covert point out that taxes don't just bring in revenue: they alter the very structure of the economy. Taxes could alter the incentives for high executive pay.
As shown in the graph, there’s a strong correlation between the growth in pre-tax income inequality and the decline in tax rates. The argument that economists usually put forward to explain this is a conservative supply-side argument: when people are taxed less, they work harder and thus make more money.
But there’s a more plausible—and more worrisome—explanation: wages are the result of bargaining in which the relative strength of each side is influenced by tax policy. As tax rates decline, executives have more reason to fight for higher salaries for themselves, especially through actions like stacking their corporate boards. Boards and other institutional interests are motivated to pay out the new wave of superstar salaries, since they aren’t being taxed away.
Follow below the fold for more.
Governing the Smart, Connected City (HBR)
Roosevelt Institute Fellow Susan Crawford looks at some of the civic innovations that will become possible when citizens have ubiquitous access to cheap, unlimited data.
Why Picking Tom Perez for Attorney General Would Be a Smart Move for Obama (Mother Jones)
The Secretary of Labor is popular with progressives, and while he would probably inspire a nomination battle, David Corn says the fight could strengthen the Democrats.
The New Women’s Issues (MSNBC)
Alex Seitz-Ward says Democrats have shifted the lens of the "war on women" to focus on economic security, with issues like pay equity taking center stage in the midterms.
Who Would Have Health Insurance if Medicaid Expansion Weren't Optional (NYT)
A new data set shows that more than 3 million, many across the South, could still be insured under Medicaid expansion, write Kevin Quealy and Margot Sanger-Katz.
The Little Union That Could (The Atlantic)
Alana Semuels profiles National Nurses United and its executive director, RoseAnn DeMoro. The breakaway nurses' union is using aggressive tactics – and they're paying off in growth.
New on Next New Deal
Election 2014: Women's Rights in the Balance
Roosevelt Institute Fellow Andrea Flynn's series on the close-call races that will impact women's lives, co-authored with local Campus Network students, continues with Georgia and North Carolina.