3 ms·
Movie stars aren't a very good example. Ronald Reagan was not 100X times better actor than the next guy. He could command a big salary because he won a tourname
by jakejnichols 11y ago
Movie stars aren't a very good example. Ronald Reagan was not 100X times better actor than the next guy. He could command a big salary because he won a tournament market based on name recognition. If he works less, someone just as good gets a chance and there is the same output.
Where a 90% tax really hurts is entrepreneurship and risk taking. If that 90% tax includes taxes on capital gains, then I have no incentive to start a business or invest in a business. If it fails I lose my money and sweat equity. If it succeeds, I get taxed so much I barely make more money than if I had just worked.
One of the reasons the economy was good in the 50's despite the high taxes was that those high taxes only applied to salaries, not capital gains. Also, there were lots and lots of loopholes so a lot of people didn't end up paying that 90%.
That all said. Americans already pay a ton of taxes. There is plenty of money for UBI already. It just needs to be reallocated from failed programs and bureaucracies - such as 90% of the educational system.
- dllthomas 11y ago"If he works less, someone just as good gets a chance and there is the same output." Given the pay disparity, if he works less there's probably more output. (... note that this is considering his decision to work less, in isolation - not the effect of the tax level that purportedly motivated that as a whole, which would take a much deeper analysis...)