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As France readies to impose a 75% tax rate on their wealthiest citizens (which will not include Johnny Depp, who fled back to his I-suddenly-don’t-hate-America-as-much-as-I-thought-I-did homeland), socialists around the world and here at home are calling for a “maximum income” to go along with a much-higher minimum income.
Business Insider takes a look at what such a Socialist’s wet dream would do the the US:
But wait, how would this idea even work? What would it do? We don’t know what would happen if we applied a top marginal rate of 100% because something like this has never been tried in an advanced economy that I’m aware of. But for the super-rich, it certainly sends a clear message: Don’t work so hard. And if you want to work hard, do it some place else.
“The obvious problem is it’s an absolute cliff for people at the top, so what’s the point of working here?” said Roberton Williams, of the Tax Policy Center. “Once you hit $5 million, it might actually cost you money to work because of all the phase-outs. The 100% tax is as a big a work disincentive as you can find.”
Go read the entire post.