Senators to Unveil the ‘Ex-Patriot Act’ to Respond to Facebook’s Saverin’s Tax ‘Scheme’

[dairydog91]

36. Even Marx would say that the Laffer Curve becomes relevant at 100% marginal.

First of all, why would anyone make over $100,000 if that money is taxed at 100% marginal? Amusement? Take, for example, a guy who builds up a construction business and would normally make $150,000 per year, post tax (And I know guys who make this kind of money, doing exactly this kind of work). Why would he ever put in any more time than is necessary to generate $100,000 per year, post-tax, if any time beyond that will be rewarded with 0 extra dollars? Also, it's quite a presumption to imagine to imagine that somehow $100,000 is the maximum value of all the work a human being could do in a year. Some ways of making that kind of money are more attractive than others, (Competent Surgeons come to mind). Even countries with much steeper rates of taxation don't approach a 100% marginal rate. If the rates do go that high, people invariably find a way to earn the income in a way that is immune to such a high rate. Or they leave.