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.
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What amazes me is that immediately after writing an article proposing grand theft, this Nolan person isn’t seized by an angry mob then tarred and feathered. It isn’t wealthy people that are the problem in this country, it is our government stealing it from us.
The current occupant of the White Hut, Pres_ent Øbama, must really have dreams of his father, as his alleged Kenyan father was an economist in Kenya that proposed the exact same 100% tax and was strongly rebuked for proposing it.
What Pres_ent Øbama is proposing is just raising the tax rate on the wealthiest citizens, which is still just as bad and just as stupid.
Long-run Macroeconomic Impact of Increasing Tax Rates on High-income Taxpayers in 2013(PDF)
Drs. Robert Carroll and Gerald Prante, Ernst & Young LLP
Common sense tells us that excessively taxing the highest earners in this country is a really bad idea, which is why those on the left can’t understand it.
“This report finds that these higher marginal tax rates result in a smaller economy, fewer jobs, less investment, and lower wages. Specifically, this report finds that the higher tax rates will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real after-tax wages when the resulting revenue is used to finance additional government spending.”
We already have all these things, why bother the rich?