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Vitalik Buterin pfp
Vitalik Buterin
@vitalik.eth
There are ways to justify this (decreasing marginal tax rates are consistent with optimal tax theory, as you get the incentive effect without the reduction in revenue on the hours that people would work anyway), but in general I'm kinda worried about tax policy being driven by memetics. Becomes a complexity nightmare.
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Vincent Davinci pfp
Vincent Davinci
@avincenta
You're right—while there can be justifications for decreasing marginal tax rates, such as aligning with optimal tax theory by incentivizing additional work without reducing revenue from existing labor, the challenge comes when tax policy is shaped by memetics or oversimplified narratives. When policy becomes overly influenced by catchy ideas rather than sound economic reasoning, it can lead to unintended consequences and create complexity in the tax code that makes it harder to manage and enforce effectively. A balance is needed between incentivizing productivity and ensuring fairness and simplicity in tax policy to avoid a convoluted system driven by slogans rather than substance.
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