this post was submitted on 13 Aug 2024
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Why do people volunteer for free?
The Beatles' "Taxman" refers to a 95% tax rate that they were complaining about. Yet they still went on to produce more records and earn more money (and yes, work).
If someone has enough money to live a life of luxury, they'll keep doing what they do to earn that life of luxury.
People volunteer for causes they think are worthy. I would never do the work I get paid to do for free or for 10% of gross pay. I'd just find a less stressful job, work way less and make about the same.
I don't see any problem there! Lol
The issue is that right now I'm willing to put in the extra effort for the return early in my career. If the government were to effectively cap income potential, some workers who would otherwise be more productive (or who perform a highly specialized service) will not bother, creating a labor shortage and increasing costs. Not a smart move if you're a country with an inflation problem that's been trending very close to full employment.
It would also make occupations like medicine that have long runways to earning even less attractive.
Money is not the only motivator.
As well, someone in the top tax bracket paying 95% tax on their income over $500,000 is still making a lot more than someone in the bottom tax bracket paying effectively 0% tax.