Monday, October 11, 2010
The Galt Tax
Of course the usual suspects such as the Wall Street Journal and Mankiw are all about trying to convince us that raising the top marginal income tax rate from 35% to 39.6% would make the geniuses who run our world stop gracing us with their precious contributions. They are essentially threatening to go on strike, like common laborers, if taxes on their income above $250,000 are raised by single digits.
Let's be clear here. We're talking about less than 2% of income earners in the USA. You've met them, if only on the freeway. They're the ones who must be in front of you, even if it means creating a six-car pileup in their wake. These are the cats who are going to pass on the deal that would have made them $3,250,000 this year ($5,000,000 less 35%) because it will only net $3,020,000 ($5,000,000 less 39.6%) next year. Instead, they'll be planning to keep their taxable incomes under $250,000.
What kind of idiots are persuaded by these arguments?