Piketty’s proposed tax on capital would hurt labor.

From Cafe Hayek.

"David Henderson reviews, in Regulation, Thomas Piketty’s Capital in the Twenty-First Century.  A slice:

But if there is anything we know in economics, it is that incentives matter. An annual tax on capital will reduce the incentive to create capital. With less capital than otherwise, the marginal product of workers will be lower than otherwise. Bottom line: Piketty’s proposed tax on capital would hurt labor.

How does Piketty handle this serious problem? He doesn’t."