Teeing off my prior post, we need to forget progressive taxation as simply a moral issue (those who can afford the most, pay the most). Progressive taxes, taxes that even get seemingly punitive on the high end, should be viewed as critical to democracy itself.
In the same way that we have “separation of powers” and “checks and balances” encoded into our Constitution to protect against the subversion of the state by one branch, we need taxes to protect against subversion of the state by monied interests. What the combination of the post war years and the relaxation of taxation starting in the 80’s have proved, is that money and power go hand in hand. If too much money is collected in some hands, the balance of power leans, creating a slope in one direction – to those already with money.
Subsequently, it is critical to enforce, artificially if necessary through taxes, a more level playing field. It is true this may stymie innovation, but lets face it – what makes people happier in the end: a roof over their head or an iPhone?
Having grown up in the turmoil of the 70’s, as bad as it was, it wasn’t nearly as bad as today (that is, Americans for the most part were happier). We may have more toys and infinite “entertainment”, but in reality most of us both lack any assets or in many cases our dignity. The dog-eat-dog, winner take all, materialism of modern society has bankrupted not only our bank accounts, but in many cases, our souls.