A wealth tax bolsters innovation – best studies prove

Finally, it seems unlikely that a tax on the ultrawealthy would harm innovation, which is a precursor to productivity growth. University of Southern California professor Michael Simkovic refutes the claim that innovation and growth require shifting more wealth and resources into the hands of a small number of billionaires. There is little, if any, overlap between billionaires or half-billionaires and the Nobel Prize,83 and most authors of patents are middle or upper-middle class.84 To reach lucrative commercial success, patented inventions may require substantial business skills related to commercialization and expanding production—skills that patent authors seldom have. On the other hand, those with the requisite business skills depend on the patent author’s innovation.85 Additionally, peer-reviewed studies show that increasing wages increases work effort, while increasing wealth actually reduces work hours.86 In light of these data, it appears that a policy directing revenues from a wealth tax toward public investments in science and education would be more likely to enhance and improve innovation.