Re: Income Tax - Smincome Tax
"The argument is that if you don't allow people to profit from business, they won't do business. Not that they need money to hire people, but money later is the incentive to hire people now. Otherwise, why bother?"
Unless the marginal tax rate is over 100%, you always get more money from working more. The idea that Zuckerberg wouldn't have founded Facebook if the tax rate on earning $10m/year is 70% is insane, because, you know, he'd still be a billionaire. Once the incomes get well above any amount you could need, standard monetary incentives no longer work. The boss of a company will stay that boss even if the tax rate changes.
Changing marginal tax rates affects people whose disposable incomes are below what they would spend if they had infinite money. Once that person buys anything they want, giving that person more money does not stimulate the economy, whereas taking some from them and handing it to poorer people does.
You can decide whether it's a moral thing to do, but lowering taxes on the already rich has no significant stimulating effect on the economy (once opportunity cost is taken into account).
Biting the hand that feeds IT
