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Posted on 07.08.08 by Thomas L. Knapp
“I do think that there’s something to the idea that the short-term labor supply is somewhat inelastic. Ronald Reagan’s stories of making a few movies and then taking the rest of the year off were plausible in the days of 90% marginal tax rates, but it’s much harder to imagine a surgeon or CEO quitting or cutting back on hours if his marginal tax rate goes from 40% to 50%. But the long-term effects of a steeply progressive income tax may be a different story altogether, because then we have to take into account the effect of the tax structure on future career choices.” (07/07/08) Link: http://tinyurl.com/5fwo3j Filed under: RRND Commentary | Report Bad Link Bookmark this post in Furl or Del.icio.us | |
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