Before revision:  We find through a novel tail regression model that a higher maximum tax rate is associated with a higher wealth Pareto exponent .
After revision:  We find through a novel tail regression method, which accommodates the unique feature that the data are truncated from below at the 400th order statistic. Applying this tail regression to the "natural experiment" (Feldstein, 1995) of the event that tax rates rapidly declined in the 1980s, we find that higher maximum marginal income tax rates induce higher Pareto exponents of the wealth distribution .