Whether politicians admit it or not and no matter how they try to spin the information, taxes have a very real affect on working, earning, productivity and the economy as a whole.
A recent New York Times column by Gregory Mankiw highlights this issue. In the article, Mankiw explains in real-world terms, the effects that tax increases have on high-income earners.
With the Bush tax cuts set to expire and additional tax increases being proposed by the Obama administration, the article is a stark reminder. Taxes will continue to be a part of the conversation as long as the budget deficit spins out of control. But as we struggle to climb from the recession, higher taxes will certainly leave their mark.
Mankiw’s article is available at nytimes.com