“Taxing Top Incomes in a World of Ideas”, Charles I. Jones2022-07-11 (economics)⁠:

This paper considers top income taxation when (1) new ideas drive economic growth, (2) the reward for successful innovation is a top income, and (3) innovation cannot be perfectly targeted by a research subsidy—think about the business methods of Walmart, the creation of Uber, or the “idea” of Amazon.

These conditions lead to a new force affecting the optimal top tax rate: by slowing the creation of new ideas that drive aggregate GDP, top income taxation reduces everyone’s income, not just income at the top.

This force sharply constrains both revenue-maximizing and welfare-maximizing top tax rates.