Rather than taxing businesses and wealthy investors, “policy-makers should deal with the planning regulations and NIMBYism that inhibit housebuilding and which allow homeowners to capture super-normal returns on their investments.” In other words, the government should focus more on housing policy and less on taxing the wealthy, if it wants to properly deal with the inequality problem.
This is precisely the problem in my home city, San Francisco. The tech-fueled economy has been great for most San Franciscans, where a booming tech sector has increased wages and protected the local economy from the ravages of the recession