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Born at the Crest of the Empire

Thursday, February 26, 2009

Thought

....because rich people will no longer want to be rich if you raise their taxes by 5%....

Bill Gates, George Soros, the doctor or lawyer down the block, they'll just just ditch their lifestyle, give it all up to become school custodians...

Because, after all, people's drive to be successful comes from changes in marginal tax rates, not anything to do with their personality, character, or anything else.

It's the tax rate, and only the tax rate.

7 Comments:

  • Snark! Snort! How DARE we expect the blame game against anyone not super-richyrich to stop?????

    Signed,
    Just another working stiff who is willing to be taxed MORE to ensure that all children have health care-- regardless of how irresponsible their parents are (or are not....)

    By Blogger "Ms. Cornelius", at 12:54 AM  

  • I don't know what got to me last night, but I was struck once again by the ridiculousness of the argument that the wealthy would just give up if taxed a little more.

    By Blogger mikevotes, at 6:48 AM  

  • I don't know about you, but I get down on my frickin' knees every night and pray to God I NEVER make over 250,000 dollars! That would totally frickin' suck!... Paying a slightly higher marginal tax rate. Nosiree. Gimme that low, low minimum wage, thank you very much.

    I'll bet 75% of American's dont even know what "marginal tax rate" means. Because Americans are so ignorant, they're easily manipulated.

    By Blogger -epm, at 8:48 AM  

  • I don't know what got to me last night, but I was struck once again by the ridiculousness of the argument that the wealthy would just give up if taxed a little more.

    I say "Good on you, mate".
    The entire Republican paradigm is literally based on myths like the one you mentioned.

    By Blogger Todd Dugdale, at 8:56 AM  

  • EPM, exactly.

    Plus, also lost in all this is the fact that almost no one on the top tier pays the equivalent of the official tax rate on their income.

    ....

    Todd, I'm not saying that there isn't some economic theory in there, tax rates do, to some degree influence behavior, but the idea that it is the sole definer of action is insane.

    By Blogger mikevotes, at 10:27 AM  

  • I think changes in tax rates can effect behavior (not simply the absolute per-cent rate), but only in the short term (12mo). I think it takes major changes in tax policy (the mix), not simply rates, to shift behavior over the long term.

    Plenty of evidence to show that "reducing cap gains = increased gvt revenues" is a one-shot deal as profit-takers adjust portfolios. It's a blip.

    By Blogger -epm, at 11:18 AM  

  • Well, tax shifts do affect the equations of investment, something might make a little more sense, but to assume that means that people will stop chasing gain altogether ignores basic human nature.

    By Blogger mikevotes, at 1:34 PM  

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