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In the short term they can raise unemployment and reduce incomes.
"The 50p tax band may reduce incomes at a time when they are already falling and have a negative impact on giving," it said.
Johnson said the effects of the chancellor's announcements "will be to reduce incomes in the bottom half of the income distribution, slightly increase them in the upper middle – among workers on modest salaries and among pensioners – and to reduce incomes for the best-off".
Second, he'll tell you that trying to do anything to reduce incomes at the top will hurt, not help, people further down the distribution, because attempts to redistribute income damage incentives.
It's encouraged liberals to rally around modest changes to the tax code that would reduce incomes at the top, instead of forcing them to reckon with the deeper, more challenging problems inherent in institutions that they themselves helped build.
A Goldman Sachs analysis of the New York City condo market published in early January addressed the possibility that pay cuts in the financial industry or a significant departure of affluent residents could reduce incomes to their pre-Wall Street boom levels of two decades ago.
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Indeed, some analysts even suggest that dollarization could be a tool to reduce income inequality.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com