3 ms·
Generally agree with most of what you're saying, it's the Tiebout model (https://en.wikipedia.org/wiki/Tiebout_model https://en.wikipedia.org/wiki/Tiebout_model
by bhupy 4y ago
Generally agree with most of what you're saying, it's the Tiebout model (https://en.wikipedia.org/wiki/Tiebout_model https://en.wikipedia.org/wiki/Tiebout_model).
> The model holds that if municipalities offered varying baskets of goods (government services) at a variety of prices (tax rates), that people with different personal valuations of these services and prices would move from one local community to another which maximizes their personal utility.
My only quip is that the marginal rate doesn't apply on every single dollar, so while it's true that after a certain dollar threshold, every incremental dollar is taxed at greater than half, your net effective rate remains well below half, for whatever that's worth.