4 ms·
You have missed the point of the article. It doesn't matter if a tax is "income tax" or "lolcats tax", economists agree that any tax creates a disincentive for
by gunderson 18y ago
You have missed the point of the article. It doesn't matter if a tax is "income tax" or "lolcats tax", economists agree that any tax creates a disincentive for productive work.
The question is, how much do tax rates impact productivity. This article points to some data that suggest that as rates increase, productivity decreases or evasion increases.
- MaysonL 18y agoAnd of course, as usual, most economists are wrong. Take the case of the average American wage slave, living from paycheck to paycheck. Raise his taxes. What happens? He (or she) needs more money to pay his bills. He has to get a second job, perhaps even start a side business. Thus, in many cases, raising taxes will increase GDP, perhaps even leading to substantial wealth creation.