True, but I also think people misunderstand what people mean if/when they say this ...

In a lot of ways there is a greater unmeasured cost to people as they work more to increase their earnings. After all, as you work more you have greater stress, more fatigue, you miss out on more family obligations, and you’re taken away from things you would otherwise prefer to do. Now, as you increase taxes you diminish the value people get from work. When someone approaches the top end of a tax bracket the combination of a greater unmeasured cost associated with working more and the decreased earnings from working makes them see little value in doing the additional work to earn more.

To use a real world example, suppose you were an employee who earned $15 per hour for 40 hours per week and your boss came to you offering overtime at the rate of $12 per hour for the first 8 hours, $9 for the next 8 hours, and $6 for each additional hour how much overtime would you be willing to do?

Now, on an individual basis this might encourage a better work-life balance when an individual's work creates work for dozens or hundreds of other workers discouraging them from working can have massive negative impacts on the economy.

The one other thing is that it also works inversely for government benefits. I know many people that refuse to get married, work more hours, get a better job, and so on, because they couldn't apply for benefits if they made more money. Its kind of frustrating to go to the hospital, and pay out tons of money for the birth of my daughter, only to find out if my wife and I were unmarried, most of her treatments would be free. It sets a horrible precedent.

i agree with you and the op and heres why.

in a perfect world there woud be no income tax, but the greedy and special interest groups are the main reason income tax will never go away. letting everyone be equal would mean we'd all have to be equal before hand which simply isn't the case. the other thing is that the military, law inforcement,  and what ever else you want to put in that category can't just make money now can they? it has to come from somewhere right.

i've always thought to myself " self! yea, what is it? self how come Uncle Sam can't pay himself and then pay all our public survents?" and myself said and i quote"i have no idea, but you'll also have to think about who would and wouldn't benifit from that idea" and then myself said "who wouldn't benifit from it?" and then myself replied " how in the hell am i supose to know? ask Marks or CGI, or maybe even somebody that went to a better college then you cause lets face it, you didn't learn shit" end quote.

i started to kick my own ass until i relized it hurt. i went to kill myself but i got pistol whipped first. 

yea, sure, go to congress, write a bill, introduce it to you colleagues, and see how far common sense gets you. i'll tell you now, sense an't common, and an't nore ain't aren't words, but knowing that ain't  gone stop people from using or saying those words.

doing away with government or introducing alot of reforms won't work either unless people are willing to work together for the greater good. 

even with these BS changes, people will still be trying to get one over on you, so just because you change or reform the way things are done means nothing in the end.

you can't fix what's broken when it can't be fixed when wht's broke only works for those who are sent to fix what's broken. Ron Paul nore Obama will be able to fix the shit whole we're in, cause when you're one man in the march, you're marching by yourself.

one voice is never loud enough in a crowd full of people chanting no we can't while you're chanting yes we can.. 

ok heres a story.

when i worked at Kroger, i made (before taxes) $250-$260 a wk(-tips) and managed to save money by cutting expenses. (being a marketing major pays off) on the other hand, my brotherinlaw made maybe $30 less then me, but thats only because i put in 13 hr. days and couldn't go over 40 hr.'s.

i made about $75 to $105 (only one other person made about that much, but not close)a wk in tips bagging for the same people every wk. and i do mean the same people. even as a cashier they wouldn't let anyone bag but me.

so on average i made about $308 a wk.

now my brother in law made an estimated $230 a wk. with tips after taxes. his wife made $1500-$1800 a wk but after taxes brought home about $800. add in what he made after taxes, and you got just over $1000.

there expenses were food, 1 kid, a gas drinking SUV, utilities, $20 haircuts for my brother in law, and $100 pair of shoes every 2 wks for my brother in law. gots to stay fresh right?

they made more then me but never had any money. 

my expenses were not as lavish. i had my Niece, utilities, public transportation, basic household and personal needs. my brother cut my hair which was free.

this realy is a classic case of someone living within there means verses necessities cause there's more to my sisters situation then i can post. she should have chose a better bank as well.

i'll give you one more scenario. your rent is $2 and you make $30. my rent is also $2, but i make $5. you budget your ass off but always have to us your credit card to buy food which only cost you 2 cent. i have $2 left to put in my savings.(i could have added more but we're strapped for time so i know you can forgive me).

long story short you also have to pay 50 cent in taxes while because $5 makes me rich i pay 5cent. you live with in your means everyday, but still come up shortcause your pay does not match your cost of living, without your wants. all you needed was a 50 cent tax cut so you could put all but 47cent into your bank account, but the $100 corp. gets nouther taxcut, while you the middleclass working keeping the company he works for at his dream job, can barely make a living.

that's why taxcuts work. when you can sneeze $1b out your ass, why can't you either pay your employes more, or pay higher taxes to take the burden off those who have worked to make you a billionar. 

for the record ($2=$2000 a wk/30=30000) $2000 a wk. which is what i made at Shenker Logistic's/P&G. not sure how well i made the senario, but i'm sure you got it

The fact that they no money is completely their own fault though. I honestly don't feel sorry for anybody out there that makes $40,000 a year and doesn't budget to save any of their money, yet people with $20,000 a year income get by just fine.

True also no one making a 70,000 to 100K plus is actually paying 50% of their income in taxes.

In Canada, you can put away 22k+ in a tax deferred Retirement savings plan. Then also put 5K of after tax income and earn as much as you want on it with no taxes. There are a lot more other things for example taking capital losses from bad years (like 2008 and 2009) and using them to lower your capital gains.

I am sure the US has many more things.

I'll try to find the article I was reading but I've read that, after you account for taxes and wealth transfers, in many States there is little difference between the true income of households earning nearly $50,000 per year and those earning $20,000 per year. Effectively, as people's income increases the increase in taxes and decrease in available governmental aid eliminates most of the benefit they get from earning more. It may seem a little outrageous at first but when you add up programs like Food Stamps with rental subsidies, healthcare programs and other handouts from the government and then combine that with the difference in taxes the true difference in income (probably) isn't that large.