How Taxes on the Rich Effect You & Your Children.
N. Gregory Mankew, professor of economics at Harvard University on how taxes on the wealthy will effect you and your children. In this New York Times piece, Using himself as an example, he describes the incentive effects of increased taxes on the individuals the current administration wants to raise taxes on: high income earners.
HERE’S the bottom line: Without any taxes, accepting that editor’s assignment would have yielded my children an extra $10,000. With taxes, it yields only $1,000. In effect, once the entire tax system is taken into account, my family’s marginal tax rate is about 90 percent. Is it any wonder that I turn down most of the money-making opportunities I am offered?
His calculations, in more detail in the full article here.
Update: It seems this article got a lot of attention from both sides. Here he is on CNBC discussing the article, and some related topics. I recommend reading the New York times piece first. The movie is never as good as the book. ;)
