Taxing the 1% IV: Incentives

View image | gettyimages.com As noted in previous essays on this topic, the highest income folks in the United States now pay about 1/3 of their income in taxes.  The left has proposed
Philosophy News image
View image | gettyimages.com As noted in previous essays on this topic, the highest income folks in the United States now pay about 1/3 of their income in taxes.  The left has proposed increasing the tax rate to 40% or even 45% while the right has countered with proposals to either not raise taxes or cut them even more. This, the final essay in this series, considers the stock argument that a tax increase will be a destroyer of incentives. The gist of the argument is that if the taxes for the top income brackets is increased to 40% or higher, the rich will become demotivated and this will have negative consequences. Since these negative consequences should be avoided, the conclusion is that taxes should not be increased—thus keeping the incentives in place. In terms of assessing this argument, there are two major points of concern. One is whether or not a tax increase would destroy the incentives of the top economic class. The other deals with the negative consequences, their nature,. . .

Continue reading . . .

News source: Talking Philosophy

blog comments powered by Disqus