The small consequences of punishing the fabulously rich. The complexities of superannuation are quite beyond me -- probably because I don't have any. But during the debate on the changes to taxing the nest eggs of the rich (changes that apparently are turning out to be quite modest) I started wondering why there has to be any tax saving for retirement savings at all.

A paper by  US and Danish academics Raj Chetty, John N. Friedman, Soren Leth-Petersen, Torben Heien Nielsen, and Tore Olsen, Active Vs. Passive Decisions And Crowd-Out In Retirement Savings Accounts, based on 45 million observations from Denmark on savings , makes we wonder even more. For the answer to the question they ask -- what happens when top income earners receive smaller subsidies for retirement savings? -- is a clear "not much":