Extensive margin watch
2009-02-26 · Original WordPress address
Will Wilkinson says (where to find permalinks for "disqus" comments?) I should take non-behavioral data more seriously. Fine. Here's a quote from a business owner facing the prospect of Obama's doubling of income tax on the top 2% of earners:
I own my business and, unlike an employee, I have the option to work as much or as little as I like. At some tax rate, the marginal dollar won't be worth earning. I'll fire some employees, scale down the business or retire altogether and stick my money in tax advantaged muni bonds and do all the traveling and relaxing I can't do now.
Irrefutable damning evidence that people respond to incentives?
Nope. Its not even an anecdote; its just some thing somebody said in a blog comment.