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Monday, October 11, 2010

Do higher tax rates incent people to work less?

What kind of people and what kind of work is forgone because of tax rates?


Taxation: Take some time off, Mr Mankiw | The Economist: "that trading foregone Mankiw columns for better education or reduced debt isn't a bad deal. Or that a novelist who curtails his writing because of the tax rate isn't much of an artist. Or that a surgeon who skips life-saving operations because of a tax increase is a cruel and immoral man. Put another way, if workers are doing something truly important, they should carry on doing it whether or not taxes go up. And if they're not doing something important, then who cares whether they do less of it?"

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