Is there such a thing as a maximum tolerance for taxation?
A rate above which people would stop working?
Logic suggests there is. If, say, the income tax were set at 100%, very few people would work. These would be the people who loved their work so much that they’d do it for nothing. Same goes for a tax rate of 99% or 98%. But what’s the upper limit? How high would it have to get before it would keep most people from being willing to work?
I wouldn’t mind if Obama raised my tax rate to 42% or even 45%. Once the rate hit 50%, though, it would start to rankle me. If it went up to 60%, I might stop working. And the many people I have talked to about this all seem to have that same 50% to 60% limit.