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> Please, show me how an appropriately set income tax disincentivizes work. The most relevant phenomenon is https://en.wikipedia.org/wiki/Deadweight_loss#Dead
by schoen 5y ago
> Please, show me how an appropriately set income tax disincentivizes work.
The most relevant phenomenon is
https://en.wikipedia.org/wiki/Deadweight_loss#Deadweight_loss_of_taxation https://en.wikipedia.org/wiki/Deadweight_loss#Deadweight_los...
What might be confusing is that relatively few people are incentivized by an income tax to do no work at all, but many people may be incentivized to do less paid work than they otherwise would. (In fact, under idealizing assumptions which don't quite apply in all cases, you would expect every person facing an income tax to do at least very slightly less paid work than without the tax.)