Exhibit A: If You Tax Something, You Get Less of It
A recent CD post suggested that whenver possible, at least some people will make changes to their behavior when faced with changes in tax rates, and will adjust/shift the timing and amount of income received to minimize taxes.
Some evidence of changing behavior for tax avoidance is provided in this article "MLB Agents Ponder Beating Potential Tax Increase":
Looking ahead to the possibility of an Obama administration, some baseball agents already are thinking about trying to beat a possible tax increase for their well-paid clients.
Democratic presidential candidate Barack Obama has proposed increasing the top federal income tax rate from 35% to 39.6%, where it was under the Clinton administration. If signing bonuses are paid before Jan. 1, they likely would be taxed at the current rate and would not be subject to any tax increase.
Free agents can't start negotiating money with all teams until Nov. 14. Only a relatively small percentage of contracts are finalized before Jan. 1. Still, for a big-money free agent earning $10 million in 2009, Obama's plan could increase his federal tax by more than $400,000.
Agent Scott Boras, negotiating eight- and possibly nine-figure deals for free agents Manny Ramirez and Mark Teixeira, already has thought about the possibility of asking for larger signing bonuses payable this year in some of his contracts.
"There's some consideration to be had with the impact of the election," he said.
HT: Bill Whitley, who writes "It didn't take long for your prediction to come true."
9 Comments:
So now we know how to reduce poverty - tax it.
25% to 50% of Detroit's high school students don't graduate.
12 years of free education are treated with disdain.
No need to get an education. No need to learn a trade.
Someone is supposed to pay me a "living wage", whatever that means, just because I walk through the door.
So this seems to be the logic:
Pay me $50,000/yr even though
* I can't read above an eighth grade level
* I can't perform basic algebra or other rudimentary math
* I don't have a diploma of any kind
* I have no skill or trade
* Pay me $50,000/yr to screw oil filters on engines even though any body, anywhere in the world can do the same thing at whatever price they see as fair to them.
The poor boomer's solution to poverty always involves taking other people's money - it never seems to involve addressing the real problem: no education, no communication skills, no skill, no trade.
it never seems to involve addressing the real problem: no education, no communication skills, no skill, no trade.
...No motivation
bob wright said:
The poor boomer's solution to poverty always involves taking other people's money - it never seems to involve addressing the real problem: no education, no communication skills, no skill, no trade.
When did I propose a solution that involves taking other people's money?
Contrary to what you might believe, I have an education and good communication and numeracy skills. But I don't have other skills and have no money to go to schol to acquire skills.
anonymous said:
...No motivation
I like to think I have motivation - I have a lot of resumes out there, and if that's not evidence of motivation, what do you call it?
I'd like to go to school but have no money. I'd limke to start a B2B service business but, you guessed it, no money. For some things you need more than motivation.
poor boomer says: "So now we know how to reduce poverty - tax it"...
Later poor boomer says: "When did I propose a solution that involves taking other people's money?"...
"Contrary to what you might believe, I have an education and good communication and numeracy skills. But I don't have other skills and have no money to go to schol to acquire skills"...
Hmmm, so were you trying to fool us when you said, "tax it"? Tax what btw?
Or were you trying to fool us when you said you had good skills?
Sigh...I was just trying to be cute and sarcastic. Since conservatives know that if you tax something you get less of it, taxing poverty is a logical way to reduce poverty.
And the affinity of many conservatives for regressive taxes demonstrates consistency - they are willing to put their money where their mouth is.
"And the affinity of many conservatives for regressive taxes demonstrates consistency - they are willing to put their money where their mouth is"...
Hmmm, and on what planet in which galaxy is this supposedly happening on?
I'm guessing your understanding of what a conservative is is on par with your alledged 'communication skills'...
As a quick example, I note the fondness among many conservatives for sales taxes as opposed to income taxes, and especially the fondness for exchanging a property tax reduction for a sales tax increase.
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