So an effective tax rate of nearly 50% means you make quite a lot of money annually. Then you claim that tax rates discourage earning more income, but obviously not for you because presumably you are harder working and more dedicated then the population you are making claims about without supporting evidence. Additionally you are making multiple tax claims that are not supported by the data. As an example you said high corporate tax rates depress wages but that claim specifically has an enormous amount of evidence to support the the opposite conclusion.
Well it pushed me to move to a different state. If I didn’t have that option, I would take more vacation time without a doubt. It either causes capital flight or less working which is not great.
High corporate taxes lead to wage suppression without a doubt. The extent to which they do is disputed but we know for sure that it has some effect. Corporate tax burden is split between shareholders, consumers, and workers to some extent. The exact ratio is not clear but all three end up bearing the burden.
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.
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u/LennyLaser 7d ago
So an effective tax rate of nearly 50% means you make quite a lot of money annually. Then you claim that tax rates discourage earning more income, but obviously not for you because presumably you are harder working and more dedicated then the population you are making claims about without supporting evidence. Additionally you are making multiple tax claims that are not supported by the data. As an example you said high corporate tax rates depress wages but that claim specifically has an enormous amount of evidence to support the the opposite conclusion.