An Army of John Galts

Glenn Reynolds asks “what happens if this stops being a joke and becomes a trend?”

We’ll find out. Most of the $250K and up crowd are Boomers nearing retirement age. Many of them get their income from businesses they own: doctors, lawyers, plumbers and more. One characteristic of these businesses is that it’s easy to scale down. If you have assured your retirement, look forward to your retirement, and see the rewards for your “extra effort” shrink due to higher taxes, scaling back and having more tee time might look pretty attractive. It’s pretty clear to me that the “Obama tax plan” will mean that

  • some of our most productive workers will become less productive
  • some other workers will lose their jobs as a result
  • tax revenues won’t grow as projected and might even shrink

And then what? This exercise is left to the reader.

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