How taxing the rich can help everyone

New Delhi [India], June 23 (ANI): Taxing rich people’s gains from capital can help reduce inequality while keeping up overall prosperity – yet only with two conditions. First, the revenues from taxation must be invested in public infrastructure such as schools, public transport, or sustainable energy grids. Second, it must be fairly possible to replace machines with labour. This is the outcome of a mathematical modelling study by a team of economists including US Nobel Laureate Joseph Stiglitz and led by the Potsdam Institute for Climate Impact Research.