The Business side of tax increases and inflation


Ok. I don’t often sound off on specific policies but here we go.

Taxes. Here is the unintended consequence of increasing taxes.

Why should I bit her knocking myself out to bring home an extra $20k over my base salary assuming I make in the now higher bracket. I will take more time off instead.

Here is the problem for the US federal tax revenue. They will get all the tax revenue on my salary as they should. They will miss that extra income while I go home and watch Dancing with the Stars.

Now I’m happy and well rested. I have a little less money in the bank. But the fed loses the Taxes they would have gotten on that 20k. In the higher bracket that is a few grand.

Multiply that by a lot of people. See where i am going? Higher income people seem to be good at the math.

I for one vote for a flat tax. Being a realist a graduate tax rate is what we have and what we will have. So how about a gently graduated rate a close a lot of loopholes and seriously limit write-offs but give a lower overall rate.

Higher taxes are very bad for the economy. This in turn is very bad for government revenues at all levels.

Dascienceguy

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: