My proposal is not a Robin Hood-like redistribution. The wage supplements and tax reductions I'm proposing for the middle class would enable them to spend more, and their spending would help move the economy to full capacity and sustained growth. Consequently, companies would enjoy higher profits, and the stock market would rise. Although the rich would pay higher taxes and thereby receive a somewhat smaller share of the economy's overall gains, those overall gains would be much larger than they would be otherwise. Hence, richer Americans are very likely to come out ahead compared to where they were before—as they did during the Great Prosperity, when they paid substantially higher taxes but enjoyed the fruits of faster growth.
Robert Reich
