Taxing the Rich Reaching Point of Avoidance

Megan McArdle in The Atlantic reports on taxing the rich:

Once the Bush tax cuts for the wealthy are gone, and the new surcharges in the health care reform bill take effect, a lot of people in high income states will be above the critical 50% mark just in income taxes. If proposals like lifting the payroll tax cap are implemented, there will be a lot more in that group. We're approaching the limit where "Tax the rich" is going to be a useful solution even in terms of raising revenue. We're also approaching the point where it may make more sense to invest in tax avoidance than in productive new activity.

Good luck to California, New York, New Jersey, and Illinois.