[quote=AN]Anyways, like I told dumbrenter earlier, my anecdotal examples isn’t meant to prove that there’s a causation between increasing taxes and reducing wage, which would lead to decreasing demand and GDP. Maybe the majority of the businesses don’t do this. I don’t have data to prove one way or another. However, it’s meant to disprove SK’s statement that higher marginal tax is stimulative. There’s no data on the mass scale to prove that and I gave anecdotal example that disprove it. The data he did provide show no real clear correlation much less causation of increasing top rate is stimulative.[/quote]
Just to be clear, that wasn’t what I said. What I said was that higher top rates (>50%) on high income is stimulative for business. It doesn’t apply in those lower income brackets where your friend’s business fits. We’re talking about taxable income level of $250K. Thats total net business income of probably at least $280K a year, often more than $300K a year. That’s rarely the kind of business where the spouse will come in and pick up a few more work hours so that they can make ends meet.
