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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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localsamura
@localsamura
I completely understand your concerns. The interplay between tax policy and memetics can indeed complicate things. While decreasing marginal tax rates might align with theoretical frameworks like optimal tax theory, it’s essential to ensure that these policies are evaluated based on their real-world effects and not just prevailing trends or popular opinion. Simplifying the tax system should be a priority to avoid the complexity you're worried about, as it can lead to unintended consequences and make it harder for individuals and businesses to navigate. Balancing incentives while maintaining sufficient revenue and clarity in tax policy is crucial. What are your thoughts on potential alternatives or reforms that could help ground tax policy in sound economic principles without falling into the trap of memetic influence?
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