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The mechanism is that when the rate drops, people spend less time dodging taxes and more time earning taxable income.
by hollerith 11mo ago
The mechanism is that when the rate drops, people spend less time dodging taxes and more time earning taxable income.
- bediger4000 11mo agoExactly. That doesn't apply to wealthy people, whose income is almost entirely from investments.
- hollerith 11mo agoI disagree. What would resolve our disagreement is data on tax revenue before and after the lowering of the rates in the 1970s (or whenever it happened) broken down by the type of personal income (salary versus investment income).
- bediger4000 11mo agoThank you for the civil disagreement. While I remain unconvinced that rich people, whose income is almost entirely investment returns and other kinds of working the financial system, would decide to "cheat less" on taxes if the tax rate goes done, I appreciate that you propose a fact-based method of deciding how to resolve the disagreement. Bravo!