I think if you're going to complain about a tax hike, you should at least know exactly how it's going to affect you.
No, sorry, I don't have to know
exactly how it's going to affect me.
Mainly because I
can't know exactly how it's going to affect me. Oh yes, I can figure out what the effect of the increased marginal rate will be on my income. Unfortunately, that's only a first order effect.
Of course, to most politicians, that's enough. "We just raised taxes, we're going to get $700 billion more in taxes now!"
Funny how every time they claims this, the amount never appears. You'd think they'd learn that when you raise taxes on something, you get less of it.
(I swear, there's something about that in economics... like a law or something for demand or something. You know like:
The law of demand states that when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises.)
I know, I know, it's silly to think that when people get less income for the same work that they'll choose less work and more free time.
I know, I know, that's only a capitalist myth, historical effects of increased tax rates notwithstanding.
But, since I prefer to use history as a guide, I know the increased tax rates will translate not only into more money I have to pay (because the middle class tax hike is still one for Jan 1), I also know that the increased tax rates will continue to slow the economy. Which likely means I will suffer secondary effects as the tax hikes on the rich and middle class "trickle down" into decreased spending, saving, and, therefore, economic activity.
When people have less money, they spend less and save less. I know, I know, shocking.
