As far as taxes/regulations and incentives go, it is a continuum. On one hand you can have zero taxes and have maximum incentive to make additional money. On the other hand you can have 100% tax and no incentive to make additional money. Because we need government for certain things, taxes are obviously a necessity. So we have to balance our need for taxes with our tolerance of dis-incetivising additional work. What level of tax or hoop jumping will stifle an individual is completely specific to that person and the opportunity. But on the aggregate, higher taxes will result in less productive work being done. I think that balance is off, especially with the progressive rates, where by their very nature, they discourage additional production. But, maybe you disagree, that the balance we have struck is not too disparaging of additional work. Just don’t claim that additional taxes don’t discourage production.
