...the health care legislation is designed to transfer wealth, the House version includes an income surtax on the "wealthy." Harry Reid's version calls for an increase in the Medicare payroll tax for those making over $250,000 per year.Marginal tax rates for the wealthy, that is, the taxes paid on your last dollar of income, are going up, up, up. If you lived the Dave Ramsey lifestyle and had a modest home and modest cars while making as much money as you could, the Democrats' effort to raise taxes on the well-to-do could result in lots and lots more leisure time for you!
If you're living below your means, then increases in marginal tax rates could be met by working less and less. You wouldn't have crushing bills to pay, so you'd be able to cut back your hours. And why not, if the government is just going to take those earnings anyway?
Who is John Galt?
2 comments:
KT,
Thanks for the link. Besides the John Galt effect, I have also noticed that people find ingenious ways to shelter income from the government, legal or otherwise; so that the actual revenue from tax increases never equals projections.
This simply brings forward the inevitable crash. They never learn.
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