I’m still gathering my thoughts on the “meaning” of Tuesday. For now, I’m not seeing half as much meaning as most others.
Until my further posts on the subject, this segment below by Dennis Miller (via Hot Air) is worth a listen.
Miller makes the point that we are heading, if not already there, to a society where it is not economically rational to work hard as a means to advancement particularly for the lower-middle and middle classes.
This is the point I made in my post on November 11, 2009, 100% Plus Taxation Key To Permanent Dem Majority. When you add up increased tax rates and loss of government benefits, the “implicit marginal rate” for increasing income exceeds 100% for those making under $50,000 per year:
Is it possible to pay more than 100% of your last dollar of income in taxes? And if it were, would you bother to earn that last dollar?
Herein lies the key to how Democrats will obtain a permanent, economically-enslaved majority if universal income-based health care subsidies are enacted. And it is much worse and more nefarious than even the Wall Street Journal recently pointed out in Confessions of an ObamaCare Backer.
The key distinction is between marginal tax rate and implicit marginal tax rate. The marginal tax rate is the rate we all talk about – what absolute percentage of your last dollar earned will be taken by the government.
The implicit marginal tax rate is the absolute percentage of your last dollar taken by the government plus the loss of government benefits resulting from that last dollar. This implicit marginal tax rate can, and does, exceed 100% for the lower-middle and middle classes, and will expand under Democratic health care proposals.