Another effect of the high progressive tax is that the salaries of the CEO of a

Another effect of the high progressive tax is that the salaries of the CEO of a company are controlled autonomously. If the maximum tax rate approaches 70-80%, companies do not pay enormous wages to excellent managers.
It is an appropriate means of wage control because most of them go to tax.
Instead, the company's workers and employees will take the step of increasing their wages.

Bringing in a good manager is very important in a company.
So now, managers are paid a lot.
In the United States, there are many cases where it exceeds 100 billion won.
Being paid more doesn't mean you're more creative and hardworking.

If the progressive tax is strongly applied
While the salaries of CEOs are controlled, good managers work as hard as they used to.
Why is that?
This has already been revealed in psychology and behavioral economics,
This is because they are more important to achievement and recognition in the market than to pay.
The reason salaries are going up astronomically now is because it's a sign of market recognition.

If the progressive tax keeps salaries under control... because it's clear that market recognition will change not only to pay, but to other factors..

In that respect, the introduction of a progressive tax is also essential.

Actual research shows that the wages and economic performance of high-ranking officials have nothing to do with each other, but rather that their pay has a weak effect on the wages of the middle and lower classes (in Piketer's paper CAPITAL)

Moreover, the introduction of a progressive tax did not hinder innovation or increase productivity.
Growth of 1.8% in 1870-1910 without income tax
1910-1950 2.1%
In 1950-1990 when the maximum tax rate was 72%, it was even 2.2%.
With the aim of stimulating the economy, the maximum tax rate has been cut in half.
However, the economic growth rate declined, reaching 1.1% in 1990-2020

In the end, widening the gap with income has no positive effect on economic revitalization.

Historical data shows that high progressive taxes narrow the gap between assets and income and have good results for overall economic growth.