To Fight Inequality, Tax Land

In responding to inequality, policy makers should recognize the difference between wealth, which includes land, and productive capital, which doesn't.

Expanding capital.

Photographer: Victor J. Blue/Bloomberg

In the lasting debate over Thomas Piketty’s book on outsized returns on capital, a significant fact has been obscured: If you exclude land and housing, capital has not risen as a share of the U.S. economy.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.