Greg Mankiw is so selfish

Greg Mankiw looks at what earning an extra dollar today will do for his family tomorrow under the proposed tax plans:

Obama’s proposed tax hikes reduce my incentive to work by 62 percent compared to the McCain plan and by 93 percent compared to the no-tax scenario. In a sense, putting the various pieces of the tax system together, I would be facing a marginal tax rate of 93 percent.

The bottom line: If you are one of those people out there trying to induce me to do some work for you, there is a good chance I will turn you down. And the likelihood will go up after President Obama puts his tax plan in place.

Obviously, Mankiw just doesn’t get it. He’s not supposed to look at what his effort gets for Mankiw or Mankiw’s family. He’s supposed to look at the greater good.

If everyone was like Mankiw, everyone would start looking at and thinking about whether what they were doing made sense or not. And where would that get us? If you are thinking about you, how does that help me? (via Instapundit)


  1. Murdoc,

    He hasn’t figured in the cost to the economy when many small businesses close and go underground, off the tax grid.

    If Obama is elected I can assure you that a good portion of my income will be removed from the tax rolls and converted to no-paper trail, cash only transactions.

    What with the current miserly interest rates paid by the banks, I have little incentive to stash money there, and cash in hand is a powerful tool if we have a sudden bank holiday or some other such occurence.

  2. “If Obama is elected I can assure you that a good portion of my income will be removed from the tax rolls and converted to no-paper trail, cash only transactions.”

    AW1 Tim,

    This scenario is EXACTLY what I’ve witnessed happening in many (Socialist) European countries for decades.

    Check books and plastic are seldom used to pay for services. As a matter of fact there are numerous Europeans who keep their asets in cash under the mattress.

    WOW. That gives me an idea. I’m going to start up a “small Business” manufacturing mattresses with build in safes!

    If you want one………..Cash only!

  3. If you make transactions under the table to try to keep the fruits of your labor for yourself and yours, you are unpatriotic, don’t you know? It’s better when you spread your wealth around. And by you, I mean politicians that don’t know you and probably don’t care a lick about you, but can use your tax dollars to buy a lot of votes. And by those politicians, I mean Obama, Reid, Pelosi, yada yada. And quite a bunch of Republicans too, to be fair.

    When the economy stays in the toilet, small businesses tank and go under, and corporations do everything they can to shelter their assets and profits from U.S. taxation, they will point the finger at unpatriotic businesses who put their selfish interests ahead of the country. The solution for them will be to level punitive taxes on the businesses remaining, further killing the economy and prosperity for everyone.

    The Good News! as the professor would say, is that sometime before all this can swing into action is that the American people will probably get pissed off and swing back into favor of free markets and lower taxation, making room for a conservative/libertarian comeback if the relevant political parties can make themselves worth voting for. And the pendulum will swing again, and the circle of life comes back to the beginning. Whether that will be in 2012, 2016, or later, though, who knows? I do know that Democrats have no notions of how to govern a country other than slogans, taxes, and finger pointing. How successful will they be at pining the blame on the Republicans when they are an absolute minority? With a compliant media, who knows.

    Did I have a point? I can’t remember.

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