Arnold Kling has an interesting thought experiment over at his new digs:
Suppose that Lois Lender and Sammy Spender work at identical jobs, earning identical incomes. However, Sammy spends all his earnings, while Lois saves 20 percent of hers. Do you think that Lois should pay more in taxes than Sammy, as happens when we treat interest, dividends, and capital gains as income?
I find a few flaws in the answers he gives but I think it’s an interesting question nonetheless and provides a bit of insight into the national conversation.