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There’s an economic incentive for someone to increase their productivity at every taxation level that is less than 100%, no?
by smikhanov 4y ago
There’s an economic incentive for someone to increase their productivity at every taxation level that is less than 100%, no?
- usefulcat 4y agoTechnically correct, but totally missing the point. There’s going to be a big incremental incentive difference between, say 10% and 90% taxation.
- smikhanov 4y agoSocieties taxing their entrepreneurs at 10 and at 90% are always vastly different. This difference in turn heavily influences every participant’s system of motivations, so comparing these two numbers alone is usually not very helpful
- ramblenode 4y agoAn apt comparison is sharecroppers. Their effective tax rate is close to 100% but they still work hard because eating > not eating.