Sunday, April 1, 2012

rich don't work less as taxes go up

Conservative thinking holds that work effort among the rich will decline if they are required to pay higher taxes. However, a recent study by Jeffrey Thompson outlined in this article by Robert Frank in WSJ's Wealth Report suggests that taxes have no such effect on work motivation among the wealthy. 


  1. I like the point that Jeffrey Thompson makes, which is that many wealthy Americans don't work less, they just get taxed far more due to their income bracket. An interesting notion that Mr. Thompson outlines in his study, as I'm sure many Americans and some economist believe that the wealthier may be working less, when in reality they're simply getting taxed at a higher rate than say, the average middle class American.

  2. The wealthy don't have to work more due to taxes going up for them because they are already rich. A few extra dollars will probably not make much of a difference in their income.