Thank you, Chair.
Thank you both for your presentation.
I have three questions, the first to Professor Milligan. I found your suggestion of dual income very intriguing and on the face of it a rather attractive idea. The working premise is that you can make a distinction between capital income and labour income. The sanctity of the idea, if you will, rests on that distinction.
In the latter part of your paper you talk about the problem with the self-employed but also with those who are in the upper margins, say basketball players and CEOs and individuals of that nature, who have enormous economic clout in the marketplace.
If capital is taxed at a flat rate and income is taxed at a progressive rate, at the intersection of rates is where the labour income will want to become capital income. So I'd be interested in your thoughts as to how you would curb that rather obvious and potentially excessive abuse of those who are probably the most privileged in our society.