Dr. Stephen Kinsella:

It comes from a particular place, which is economic history. We saw massive increases in productivity in the US in the 1940s and 1950s, when capital was taxed at 50%, 60% and 70% and sometimes 85%. It is not true to say these things harm productivity. We have tried the Thatcherite experiment and we know to where it leads. Increasing people's wages overall is generally a good thing, especially as a proportion of GDP.