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disincentivize productive individuals from working by taxing their income more. And yet the most productive societies have the highest tax rates... Clearly, t

disincentivize productive individuals from working by taxing their income more. And yet the most productive societies have the highest tax rates... Clearly, this theory that taxes disincentive productivity does not comport with decades of empirical evidence. Literally nobody who values money says, "I could make 1 billion dollars but since I'll only get $450 million after taxes I'm just going to sit on this beach and do nothing instead."

sokoloff 3y ago
What’s the measure you’re using to rank “most productive societies”? The first one that comes to mind for me is “GDP per capita” and when I sort that list in descending order my first thought isn’t “those are some high tax rate jurisdictions at the top!” https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?most_recent_value_desc=true https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?most_rec...
gruez 3y ago
>Clearly, this theory that taxes disincentive productivity does not comport with decades of empirical evidence. Literally nobody who values money says, "I could make 1 billion dollars but since I'll only get $450 million after taxes I'm just going to sit on this beach and do nothing instead." 1. Income tax applies to everyone, not just billionaire startup founders. Doctors might be well paid, but I'm very skeptical that they'll be equally willing to work more hours if their marginal returns from working was halved by taxes. 2. going back to the claim that "taxes [...] aren’t first-order about generating revenue, they’re first-order about creating incentives", what are income taxes supposed to incentivize then?
- gamblor956 3y ago
  As a tax lawyer, my clients are the people who would be most affected by high taxes. Literally none of my hundreds of clients has ever turned down making more money just because a little more of it will be taxed. And shockingly, despite the "high" tax rates of CA and NY, almost of my clients prefer to live in these high-tax jurisdictions over low tax jurisdictions like FL where they would keep more of their money. Some of them even choose to live in the EU, where even more of their money goes to taxes.

sokoloff 3y ago

What’s the measure you’re using to rank “most productive societies”? The first one that comes to mind for me is “GDP per capita” and when I sort that list in descending order my first thought isn’t “those are some high tax rate jurisdictions at the top!” https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?most_recent_value_desc=true https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?most_rec...

gruez 3y ago

>Clearly, this theory that taxes disincentive productivity does not comport with decades of empirical evidence. Literally nobody who values money says, "I could make 1 billion dollars but since I'll only get $450 million after taxes I'm just going to sit on this beach and do nothing instead." 1. Income tax applies to everyone, not just billionaire startup founders. Doctors might be well paid, but I'm very skeptical that they'll be equally willing to work more hours if their marginal returns from working was halved by taxes. 2. going back to the claim that "taxes [...] aren’t first-order about generating revenue, they’re first-order about creating incentives", what are income taxes supposed to incentivize then?

gamblor956 3y ago
As a tax lawyer, my clients are the people who would be most affected by high taxes. Literally none of my hundreds of clients has ever turned down making more money just because a little more of it will be taxed. And shockingly, despite the "high" tax rates of CA and NY, almost of my clients prefer to live in these high-tax jurisdictions over low tax jurisdictions like FL where they would keep more of their money. Some of them even choose to live in the EU, where even more of their money goes to taxes.