| Not if one eschews the search for the Just Price of every good and service. Since you cannot know what your labor is worth except through what you can command in the marketplace, and since what it commands is, in the end, what people in your job are, on average, willing to work for, what you net is basically fair, although perhaps within a range of possible negotiated results. Remember, the argument of the supply- siders had to do with the reduction of incentives through high marginal rates. If the additional dollar was worth less, one had less reason to strive for it, and therefore would not be as productive. Similarly, the main problem with excessive taxes is that they increase compliance costs, including enforcement, as incentives to cheat or complicate the tax code are increased. Additionally, if the cost of labor increases through taxes, but the product or service is not as flexible in increasing revenue, wages may be somewhat depressed, or jobs may be lost, rather than having a smooth passing on of costs....... |
