Originally posted on International Liberty:

I’ve explained that it is silly for Obama and others to think it is easy to squeeze more money from rich taxpayers, and I’ve also provided evidence from the 1980s to show that upper-income people have considerable ability to respond to changes in tax rates by shifting the timing, level, and composition of their income.

But I haven’t specifically responded to some recent studies which make rather outlandish claims that the revenue-maximizing tax rate is 70 percent or above.

Fortunately, my Cato colleague Alan Reynolds has stepped forward. His column in today’s Wall Street Journal decimates these assertions.

President Obama and others are demanding that we raise taxes on the “rich,” and two recent academic papers that have gotten a lot of attention claim to show that there will be no ill effects if we do. The first paper, by Peter Diamond of MIT and Emmanuel Saez of the University of…

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