The more you earn, the more you get taxed. This notion seems natural to most of us. The question is, how do you determine the magnitudes? — This is the relationship between the Economic concept of marginal utility and progressive taxes In brief, as people gain more wealth, their marginal utility for money decreases. For example, an additional $50,000 for someone with a net worth of 10 million does not result in a large increase of positive marginal utility whereas $50,000 for someone with a net worth of 300,000 results in…