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[fartingmonkey]

Someone smart please tell me what this means http://online.wsj.com/article/SB122385651698727257.html

All I could understand was that if you make more money you pay more taxes, so making more money is bad.

Comments

[gregstoll]

I did taxes for people for two years, and that is one confusing article

[gregstoll]

You can read more about his plan here if you have an abundance of time and interest.

[djedi]

In general, the author is against tax credits, tax refunds, welfare and taxes basically. Specifically, the author is focusing on one particular area which is the same misdirection that supply siders use, one measure called 'marginal tax rates'. The marginal tax rate is the amount of extra taxes you pay if you were to suddenly earn exactly one dollar extra. Typically, if your tax rate is 30%, on one extra dollar you'd pay 30 cents. Supply-siders believe that if you make the marginal tax rate too high, people will stop working (extra). Because, I'm sure the guy that can't afford health insurance already will stop working that second job because he only keeps 80 cents out of every dollar earned instead of 90 cents...yadda yadda yadda. The problem is that M.T.R. is only a worry of the rich who have plenty of money to burn and people who have the possibility of earning extra somehow but have no need for the money. Also, supply siders tend to think any number greater than about .05 is too great a tax rate