Taxes Matter XIX
Harvard Economist N. Greg Mankiw has an op-ed in the New York Times (free registration required) which does a great job at highlighting the dynamic, long-term impacts of taxation . . . the decision to save. As he puts it:
HERE’S the bottom line: Without any taxes, accepting that editor’s assignment would have yielded my children an extra $10,000. With taxes, it yields only $1,000. In effect, once the entire tax system is taken into account, my family’s marginal tax rate is about 90 percent. Is it any wonder that I turn down most of the money-making opportunities I am offered?
Nine-Zero percent! Ugh.