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If you take away the incentive to work for an extra dollar, you break marginal incentives for high value workers. Too much progressive taxation is as unbalance
by robocat 1y ago
If you take away the incentive to work for an extra dollar, you break marginal incentives for high value workers.
Too much progressive taxation is as unbalanced as CEO pay is.
I am lucky enough to live in New Zealand and be taxed at 39% plus 15% sales tax. At some point I feel like the government is getting its pound of flesh. I just don't feel motivated to work hours to earn extra.
The incentive of the government should be to encourage me to earn more since it would get its cut. Every other citizen misses out on 39 cents when I feel it is not worth trading my time for less than 61 cents on the dollar.
Incentive systems matter. It isn't only about money - it is also about what feels fair.
Everybody complains about the people earning more than them. If you're in the US you are excessively rich compared with most of the rest of the world. How about we tax everybody in the US at 50% and spread some of that wealth down to the workers in Vietnam or Bhopal? Strange how so many people whine about fairness but those same people don't wish to share their wealth fairly.