Re:The Income Rich Take One For The Team. Thanks!
by jacquesgt on Wednesday January 02, 2013 @04:46AM
(#4995976)
But, with the higher tax rate, someone else might decide it's worth it to increase their labor by 40% so as to increase their post-tax income by 20%, whereas they only would have increased their labor by 20% without the tax effect. So, it really isn't clear that higher taxes lead to lower amounts of labor.
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Re:The Income Rich Take One For The Team. Thanks!
by prostoalex on Wednesday January 02, 2013 @05:32AM
(#4996075)
Except that someone will be hitting the external limitations (only 24 hours in a day, human body needs non-billable hours for sleep and food) pretty quickly. Also, this is true as long as there are no opportunity cost alternatives (spending time with family, pursuing hobby).
In a nutshell, "High top marginal personal income tax rates are found to impede long-run productivity". Source on this is OECD, but original PDF link no longer works http://www.cato.org/blog/oecd-admits-high-personal-corporate...