Extensive margin watch

Will Wilkinson says (where to find permalinks for “disqus” comments?) I should take non-behavioral data more seriously. Fine. Here’s a quote from a business owner facing the prospect of Obama’s doubling of income tax on the top 2% of earners:

I own my business and, unlike an employee, I have the option to work as much or as little as I like. At some tax rate, the marginal dollar won’t be worth earning. I’ll fire some employees, scale down the business or retire altogether and stick my money in tax advantaged muni bonds and do all the traveling and relaxing I can’t do now.

Irrefutable damning evidence that people respond to incentives?

Nope. Its not even an anecdote; its just some thing somebody said in a blog comment.

2 thoughts on “Extensive margin watch”

  1. doubling of income tax on the top 2% of earners? Really? When did this happen? My Wall Street Journal said the biggest changes come in limiting the mortgage deductions for high income earners (a worthless thing to subsidize anyway), and in letting the Bush tax cuts for the rich expire…

    Reminds me of Joe the plummer, just your average joe who makes $50,000 a year and nevertheless told the world he plans to buy a business with yearly profits above $250,000, and hence Obama’s modest tax increases on the rich would bankrupt hardworking middle-class Joe’s like hisself…

  2. There’s this guy. He’s the president or something of some country. He gave a speech to some people the other day. Did you hear about it?

    He said he’d only raise taxes on the top 2% of earners. Then the next day he said he’d reduce the deficit by a whole bunch. These statements amount to a doubling of the tax bill the top 2% earn.

    Of course, this wasn’t what my post was about. This post was about how cheap talk is cheap talk no matter what political team you’re routing for.

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