First In, First Out and Taxing Income
Here’s the unintended consequence of Mr. Obama’s revenue enhancing plan, and I must tell you I want the feds to get more revenue. I don’t want to starve them, as some people do. We need a robust military, a good transportation system and protections all over the place. But if you tax achievement, some of the achievers are going to pack it in.
Again, let’s take me. My corporations employ scores of people. They depend on me to do what I do so they can make a nice salary. If Barack Obama begins taxing me more than 50 percent, which is very possible, I don’t know how much longer I’m going to do this. I like my job, but there comes a point when taxation becomes oppressive. Is the country really entitled to half a person’s income?
Sadly, he won’t quit. Tweet from @ferretthimself: “You know, I was GOING to be a multi-millionaire. Then I saw the kind of taxes Obama planned for me, so I’m just gonna work minimum wage.”
He was being ironic, of course, but people do put far too much weight on deadweight loss. It exists, but the distaste for marginal taxes isn’t strong enough to convince people to simply not work.
If anything, convincing producers to not do work in order to avoid paying more in taxes might be a good thing – it’d open up the opportunity for greater competition by introducing entrepreneurs to fill in the reduced supply for that demand. People demand something on Fox News at O’Reilly’s time slot (I don’t know why but I’m sure insane people have their crazy reasons.), so someone else will fill in that spot – perhaps someone fresher with new ideas.
Establishment hates marginal taxes because it cuts into their profits. Entrepreneurs don’t mind marginal taxes because they’re not making anything yet anyway. Hike taxes up, create new businesses.