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>> I don't see how flat or even marginal income taxes disincentivize people from making more money When you hit higher tax brackets it gets more difficult to n
by mamon 6y ago
>> I don't see how flat or even marginal income taxes disincentivize people from making more money
When you hit higher tax brackets it gets more difficult to negotiate a raise with your employer, because to get X more money for yourself you need your employer to spend 1.4X more on your salary. Flat tax rates have no such effect.
- giantg2 6y agoBut as a marginal system only taxes the income above the cutoff at the higher rate, you would still make more money. For example, you are making $99k and paying 4% (pretty close to many state income taxes) on that with the next bracket at $100k with a 6% rate. You get a raise to $110k which means you are making an additional $10360 after tax and only paying an additional $200 in tax (4% vs 6% on that $10k). I don't see why you need a 40% increase.
- deleted 6y ago[deleted]