On Letting Bush’s Tax Cuts Expire
If the rate on the top bracket is heavier, people on top aren’t going to work as many hours because they won’t get as much for their money. At some point they’d rather spend time with their family and decrease their overhead. The same goe…s for those investing and hiring for their businesses: remember that small business owners, who drive our economy, report their revenue as personal income. If taxes go up, they can’t hire as many people. I’ve heard plenty of small business owners on the radio, and seen plenty of letters to the editor from doctors in the WSJ, corroborating this. If you didn’t get a bonus for overtime, you wouldn’t want to work as much of it, right?
Also, this article is worth reading. Arthur Laffer argues that the specter of tax hikes is affecting our economy already.