...Europe the collection of separate low-inequality places has
generally high taxes and generally high levels of income redistribution.
But Europe the collective has extremely low taxes and almost no income
redistribution. Greg Mankiw suggested in a recent New York Times column
that radically decentralizing tax and redistribution policy in the
United States would spur huge economic benefits.
He might have cited the prevailing dynamic in the European Union as an
example of his ideas being put into practice, but I think doing so would
have tended to undermine the conclusion.
Edward Conard agrees with Mankiw that inequality in America is too low because of too much tax on corporations and the wealthy, but Conard is much more explicit about cheering for greater inequality and more wealth for the top 1% richest Americans. He even
wrote an entire book about it.