"the notion that marginal tax rates do matter"

Eli,

I was amused by your grudging admission "I  have some sympathy with the notion that marginal tax rates do matter. " I could almost feel your pain. I kept rolling over those words "the notion." I have sympathy with the notion 2 + 2 = 4.

Try this one on for size.

Bill

From Greg Mankiw's Blog

WEDNESDAY, OCTOBER 17, 2012

People Respond to Incentives

Even in France:

France's new 75 percent income tax on the rich may not be popular with millionaires. But it's being cheered by another group: Paris real-estate buyers. Real estate agents say that the number of multi-million-dollar real-estate listings in Paris has jumped more than 25 percent over last year -- due in part to the threat of the new income tax....[B]rokers say the 75 percent tax on the wealthiest French citizens has contributed to the decision by many of the them to sell their homes in anticipation of a possible move to another country.