4 ms·

High income earners in big cities are not typically considered to be part of the middle class. This proposal still lets them (us) keep the golden handcuffs beca

by vostok 9y ago

High income earners in big cities are not typically considered to be part of the middle class. This proposal still lets them (us) keep the golden handcuffs because post tax income is still monotonically increasing in pre tax income under the proposal.

stale2002 9y ago
Monotonically increasing income isn't enough. If marginal tax are 90%, why would anybody be stupid enough to take an 80 hour a week job that only pays a little bit more, due to taxes, than a similar 6 figure salary job that only requires 40 hours a week? 100k-300k salary jump works out to only 20k increase, at 90% marginal tax rates. I myself have certainly considered taking a job in finance, or at a high-payed, but stressful, tech company. And it is a hard tradeoff that I think about. More money vs less stress and less hours. And if marginal taxes were something like 90% there is no way I would even CONSIDER the job that now doesn't even pay that much more. I'd just switch to some 30-35 hour a week, "life-style" business that still pays OK, and, I'd chill. I mean, why bother, right? I am motivated by incentives. Remove those incentives and you remove my motivation.
- pdimitar 9y ago
  I think that the people who were smart enough to propose a viable alternative will also be smart and proactive enough to do their best to tweak the numbers. That being said, your example is excellent and I absolutely agree. There are a good number of people who we the gamers classify as "try-hards" who would still do what you said you wouldn't, because they are like "if I work hard enough I'll get more money than every other loser relying on universal income around me" -- but yes, they are a minority.
rhino369 9y ago
Just because income increases, doesn't mean it's worth the effort. Why work hard to make 200k, when your 100k job nets only 25k a year less? Some jobs are all or nothing, but a lot aren't.

by vostok 9y ago

stale2002 9y ago

Monotonically increasing income isn't enough. If marginal tax are 90%, why would anybody be stupid enough to take an 80 hour a week job that only pays a little bit more, due to taxes, than a similar 6 figure salary job that only requires 40 hours a week? 100k-300k salary jump works out to only 20k increase, at 90% marginal tax rates. I myself have certainly considered taking a job in finance, or at a high-payed, but stressful, tech company. And it is a hard tradeoff that I think about. More money vs less stress and less hours. And if marginal taxes were something like 90% there is no way I would even CONSIDER the job that now doesn't even pay that much more. I'd just switch to some 30-35 hour a week, "life-style" business that still pays OK, and, I'd chill. I mean, why bother, right? I am motivated by incentives. Remove those incentives and you remove my motivation.

pdimitar 9y ago
I think that the people who were smart enough to propose a viable alternative will also be smart and proactive enough to do their best to tweak the numbers. That being said, your example is excellent and I absolutely agree. There are a good number of people who we the gamers classify as "try-hards" who would still do what you said you wouldn't, because they are like "if I work hard enough I'll get more money than every other loser relying on universal income around me" -- but yes, they are a minority.

rhino369 9y ago

Just because income increases, doesn't mean it's worth the effort. Why work hard to make 200k, when your 100k job nets only 25k a year less? Some jobs are all or nothing, but a lot aren't.