Skip to main content

Taxes and (Dis)Incentives to Work Hard

It's been a few months since I've posted anything up here (chalk it up to b-school). But I figure I should try to keep in the habit of posting things I come across. With the election only 8 days away, I thought this one was appropriate. I read a post in Mankiw's blog called "My Personal Work Incentives". He takes a look at each of the candidates tax plans, specifically the high-end of where their tax plans would place people and companies, and then considers where an additional dollar earned today would be 35 years from now. Basically, if he earned an additional dollar today and saved it for 35 years with interest at 10%, what could he expect to hand over to his kids in 35 years (taking into account personal income taxes, capital gains taxes, corporate taxes, and estate taxes)?

So, it turns out that $1 would yield $28 to his kids without taxes, $4.81 with McCain's tax plan, and $1.85 with Obama's tax plan. I thought this was a funny closing line:
The bottom line: If you are one of those people out there trying to induce me to do some work for you, there is a good chance I will turn you down. And the likelihood will go up after President Obama puts his tax plan in place. I expect to spend more time playing with my kids. They will be poorer when they grow up, but perhaps they will have a few more happy memories.

Comments

Popular posts from this blog

Biofuels May Hinder Anitglobal-Warming Efforts

Read an interesting article a couple weeks back in the WSJ on how biofuels may actually increase carbon emissions in the medium to long-term. Apprently the shifts in land-use necessary to support the production of bio-materials like soybeans, corn, or palm could in fact release more carbon emissions. The time it takes to get carbon-neutral on some of these projects is pretty crazy - 319 years for soybean biodiesel from Brazil (assuming you're clearing rainforest), 93 years for corn ethanol from the U.S. (assuming you're clearing grasslands), 86 years for palm biodiesel from Indonesia (assuming you're clearing rainforest). I suppose biofuels really aren't meant to reduce carbon emissions, but just crazy that they potentially exacerbate the problem so much.

Nine Prescriptions for Building the Duke Entrepreneurial Community

I think Duke can have one of the strongest entrepreneurial communities in the world. Are we there yet? Well, not yet. But there's a tremendous amount of momentum that I saw build in just the past two years while I was getting my MBA at Duke. While leading Duke's 10th annual business plan competition, the Duke Start-Up Challenge (DSC) , last year, I witnessed a near doubling of participation on campus in just a single year. The interest on the ground was clearly there and building rapidly. But now that I'm an alum, I'm looking back and wondering ... how do we rev-up the Duke entrepreneurial community even more? I read a great article by Daniel Isenberg, a professor of management at Babson, called " How to Start an Entrepreneurial Revolution " in the June edition of the Harvard Business Review. Isenberg outlines nine prescriptions for governments that want to create entrepreneurship ecosystems in their countries. Although he was focused on governments an...

Wi-Fi for the Third World

Read an article in Forbes about a venture called WiLDNet that is providing low-cost, long-distance wireless internet access to the Third World. The initiative is being run by the Technology and Infrastructure for Emerging Regions ( TIER ) group at UC Berkeley headed by Eric Brewer (founder of Inktomi). It can transmit up to 60 miles using just 8 watts of electricity (a solar panel can run it) at cable modem speeds and costs only $400. One hospital is using it to deliver telemedicine in India. Very cool use of technology.