Tuesday, October 12, 2010

Tax the Rich?

This article by Gregory Mankiw in the New York Times is interesting.  He provides some food for thought to those who think taxing the rich will make the country a better place.
Maybe you are looking forward to a particular actor’s next movie or a particular novelist’s next book. Perhaps you wish that your favorite singer would have a concert near where you live. Or, someday, you may need treatment from a highly trained surgeon, or your child may need braces from the local orthodontist. Like me, these individuals respond to incentives. (Indeed, some studies report that high-income taxpayers are particularly responsive to taxes.) As they face higher tax rates, their services will be in shorter supply.
Read the entire article to find out why.

Edit: I just read this great follow up story to Mankiw's article.  Atlas will shrug.  We're leaving him no other options.


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