Sunday, June 22, 2008

Lets hope that these incentives don't matter

Irwin Seltzer on Obamanomics:
Taxes change behavior. By raising rates on upper income payers, Obama is reducing their incentive to work and take risks. The income tax increase is not all that he has in mind for them. He plans to increase their payroll taxes, the taxes they pay on dividends received and capital gains earned, and on any transfers they might have in mind to their kith and kin when they shuffle off this mortal coil. If the aggregate of these additional taxes substantially diminishes incentives to set up a small business of the sort that has created most of the new jobs in recent decades, the $1,000 tax rebate will be more than offset by the consequences of reduced growth and new business formation.

1 comment:

  1. Such raising rates are really tough to handle. I am doing Forex trading and I always keep eye on these things given they can make such a big difference, I am working with OctaFX broker and there I get massive help courtesy to their 50% bonus on deposit, it is available to be used without any restrictions, so that’s why I am able to perform nicely and that allows me to get fair amount of success and able to make profits really consistently.