Tax: Income
The income tax is determined by applying multi-tiered tax rates based on income (the rates increase as income rises). The income tax as we know it was instituted in 1913, when the Sixteenth Amendment overturned the Supreme Court's 1895 ruling that outlawed the policy.
Cry Wolf Quotes
It should have been obvious from experience—but wasn’t—that additional hard work, genius, creativity and risk-taking were all discouraged by high marginal tax rates.
For years now we have moved inexorably toward a larger and larger share of resources being absorbed by government. This has translated into a greatly expanded role for government in business, society in general, and in our personal lives. Obviously, this involvement has carried a price tag—which has translated into fewer resources available for more productive use in the private sector.
'Free Business from Political Persecution' and 'The Country is Suffering from Too Much Law'.
Why should any of us strive to make that extra dollar of income when the government is going to lay claim to an increasing share of it?
Evidence
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Millionaire Migration and State Taxation of Top Incomes: Evidence From A Natural Experiment
The rich did not flee New Jersey wen the state raised tax rates on top earners by 2.6 percentage points.
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Maryland Millionaires Vanish in the Face of Recession, Not Higher Taxes
Maryland's tax increases on the rich did not induce millionaire flight.
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Tax Cuts on the Rich Don't Spur Economic Growth
The Center for American Progress takes apart supply side myths.
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The Number of High-Income Taxpayers Increased Significantly During a Period With 10 Percent and 11 Percent Tax Rates on High-Income Earners
After California raised taxes on the rich, the number of residents in the affected tax brackets rose as well.
Backgrounders & Briefs
Taxes Not Seen as Making the Rich Flee New York
Almost everyone agrees that raising taxes on the rich does not induce mass upper-class migration.
