Debate on Taxing the Rich

PRO: Paul Krugman and George Papandreou v. CON: Newt Gingrich and Arthur Laffer How should advanced countries respond to growing income inequality? For some the answer is obvious: redistribute the wealth of the top income earners who have enjoyed, for almost a generation, the lion’s share of all income gains. Imposing higher taxes on the wealthy is the best way for countries such as Canada to reinvest in their social safety nets, education, and infrastructure while protecting the middle class. Others argue that anemic economic growth, not income inequality, is the real problem facing advanced countries. In a globalized economy, raising taxes on society’s wealth creators leads to capital flight, falling government revenues, and less money for the poor. These same voices contend that lowering taxes on everyone stimulates innovation and investment, fuelling future prosperity. To advance the public policy debate of our time, the Munk Debates will move the motion: Be it resolved, tax the rich