The “Affordable” Care Act will cause marginal tax rates to rise approximately five per cent, which is the equivalent of doubling the employer and the employee payroll taxes for the half of the population that will be paying for this. To put it another way, it is five times as large an increase as we saw when the payroll tax reduction expired.
Increasing the marginal tax rates discourages people from working more, and those who continue earning at the same level find that their discretionary income drops rather radically. “Five percent” doesn’t sound like a lot – it makes it sound like if you had $1,000 left over at the end of every month, you would then have $950 left over – but once federal, state, and local taxes are paid, and food, shelter, and transportation are purchased, the effect on discretionary income is much larger than 5%.
The S&P alleges that its prosecution for fraud is brass-knuckled [okay, my phrsae] retaliation for stripping the U.S. government of its AAA credit rating. Anyone ever played a sport wherein the referees or umpires were also part of the game? Didn’t think so.
Speaking of holding the government accountable, two Congressmen are co-sponsoring the IRS Abuse and Protection Act, which would enable citizens to know when their records were being accessed, for what purpose, and what information was disclosed.
Sally Haslanger writes about the dearth of women in philosophy. I’ve read The Euthyphro in the original Greek, and am here to tell you that women aren’t always interested in becoming philosophers because of the intense navel-gazing. Now, philosophy might be a better choice of major for a woman, particularly a policy-oriented woman who wants to really change the world, than would English or Gender Studies, but few women want to make a career out of it.