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by lotsofpulp
736 days ago
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Each additional of unit of time you work in a given period of time is one less unit of time for something else. For example, regardless of taxes, working 8 hours can mean you have dinner with your family. Working 12 hours means more money, but missing dinner with family so the additional 4 hours would need to be compensated more than the first 8. Taxes would be similar. If setup the tax rate so high, say 90% for the amount of income one would earn for the average wage beyond 8 hours, then there wouldn’t be much reason to give up your leisure time. Kind of related to this concept: https://en.wikipedia.org/wiki/Marginal_utility |
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