Why squeezing the rich doesn’t produce much juice

A devastating blow against Brown’s “tax the rich” plan from the Institue of Fiscal Studies today. How much will the new 45 percent tax rate for those over £170,000 raise? “Approximately nothing” says the IFS and adds that “HM Treasury would raise more with, eg, a 44 percent rate”. This reminds us why most developed countries have cut their top marginal rate: it discourages risk-taking.