Monday, October 27, 2008

Tax Plans and the Incentive to Work

Harvard economics professor Greg Mankiw compares the McCain tax plan and the Obama tax plan. Upshot? "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."

Read the whole thing.

On a related note, see this anonymous parable, Barstool Economics, making the round on the internets.