THE TOP TAX RATE THAT MAKES ALL CITIZENS, INCLUDING THE HIGHEST 1 PERCENT OF EARNERS, THE BEST OFF IS SOMEWHERE BETWEEN 85 AND 90 PERCENT. — Dirk Drueger, University of Pennsylvania. The question one must ask is, confronted with a 90% marginal tax rate (i.e., a person only pays 90% on income ABOVE the highest tax bracket threshold; income below the threshold is taxed at a lower rate), would LeBron James play basketball less or financial executive Jamie Dimon work less? (As employees they cant simply move offshore.) If you think the answer is no or unlikely, then it is logical to adopt the highest marginal rates that ensure that government accumulates the revenues needed to improve the quality of life for all citizens. ARTICLE: Economists Say We Should Tax The Rich At 90 Percent (Oct 22, 2014). huffingtonpost/2014/10/22/economists-tax-rich_n_6024430.html ARTICLE: Tax Rates vs Tax Revenues (Jul 12, 2011). mercatus.org/publication/tax-rates-vs-tax-revenues INFO: Marginal Tax Rate Defined investopedia/terms/m/marginaltaxrate.asp INFO: Can Moving to a Higher Tax Bracket Cause Me to Have a Lower Net Income? investopedia/ask/answers/071114/can-moving-higher-tax-bracket-cause-me-have-lower-net-income.asp
Posted on: Fri, 24 Oct 2014 22:27:07 +0000
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