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0 pointssmikhanov2y ago0 comments

There’s an economic incentive for someone to increase their productivity at every taxation level that is less than 100%, no?

0 comments

usefulcat2y ago

Technically correct, but totally missing the point. There’s going to be a big incremental incentive difference between, say 10% and 90% taxation.

ramblenode2y ago

An apt comparison is sharecroppers. Their effective tax rate is close to 100% but they still work hard because eating > not eating.

smikhanovOP2y ago

Societies taxing their entrepreneurs at 10 and at 90% are always vastly different. This difference in turn heavily influences every participant’s system of motivations, so comparing these two numbers alone is usually not very helpful

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