November 25, 2012
RESPONDING TO MARGINAL TAX RATES: Reader Alex Clay writes:
After the election, my wife and I are going partial Galt. We’re in California, so our state income tax went up in addition to what’s sure to come out of Washington.
My wife quit her job last week. I increased my participation in a tax deferment plan offered by my employer to bring my taxable income as close to $250K as possible. We’ll be cutting back a little, but the government is going to getting a whole lot less.
My wife’s entire salary barely covered our tax bill – she was 100% slave to the government, while I was a 10% slave. Now she is 100% free, and I’ll be a ~35% slave As a couple, 17.5% of our time is slaving on the government plantation from an astounding 55% previously.
My wife is deliriously happy, our children are delighted to have mom home, the dog gets more walks, and I find not spending money rapturously satisfying.
I think we’ll see a lot of this. Whether it will add up to “Irish Democracy” or not, well, we’ll see.