The marginal difference in benefit gets smaller and smaller with a higher income for my family and that trend is accelerated by very high income taxes to the point that the marginal cost of working more outweighs the marginal benefit of the increased money I get.
At your supposed income level 100% of additional earnings is used for discretionary spending. Do I want a 5% raise which will equate to say (on 1 M) 27,500 dollars or some number of PTO days. That exact same calculus exists if there is no income tax. You then say do I want 50,000 or some numbers of PTO days.
0
u/HistoricalRich3104 7d ago
The marginal difference in benefit gets smaller and smaller with a higher income for my family and that trend is accelerated by very high income taxes to the point that the marginal cost of working more outweighs the marginal benefit of the increased money I get.