Some economist named Greg Mankiw continues his attack on high marginal income tax rates for rich people, which I won't bother taking the time to make fun of. Actually, I think I will (since I'll get paid for it -- this blog sells LOTS of ads*). Mankiw:
Addendum: Some blogger named Barry Ritholtz poses a bunch of questions for me, which I won't bother taking the time to answer. Unless, of course, he offers to incentivize me sufficiently. For free, however, I will answer one of them: "You teach at Harvard and live in 'Taxachusetts.' If state taxes are so important, have you considered teaching at Yale, and living in much lower state tax land of Connecticut?"
First of all, the top state income tax rate is higher in Connecticut than it is in Massachusetts.
Second, Yale? Are you serious? Yale?
Note that Ritholtz has the #1 business and economics blog according to the Gongol rankings. His questions are good (e.g., have you ever heard of incorporation?) and worth a quick look if only to see how empty the response is**. Paraphrased: I won't respond to your questions because you are, well, frankly, a nobody (unless you pay me sufficiently -- I'm always happy to take nobody-cash and have nobodies use my favorite textbook!).
And instead of simply being a snarky jerk***, I'll actually say something economic. In the comments I gave my unresearched opinion on the backward bending labor supply curve:
Actually, Mankiw and I both believe in the backward bending labor supply curve. We differ in that Mankiw thinks that the backward bending part for those who make over $250k/year has a significant macroeconomic impact. I think that the Reagan tax cuts were right and had a positive macro impact. Cuts much beyond that are nice but no big deal, except to those taxed, of course.
In other words, it doesn't much matter to the macroeconomy if the very rich take an extra day off every now and then.
*Our ad income is kinda small. I get a dinner out every 6 months or so and my fridge is stocked with beer.
**In fairness, he does answer a few questions from Michael Kinsley in the blog post link above (without renumeration!). Here is one answer:
Mike might recall that he has, as an editor, several times tried to recruit me to write something for him. I turned him down every time. If he had offered me a reasonable fee, and somehow could have promised that this income and all the investment returns it subsequently generated would be free of all taxes, I might well have accepted the job.
***From the inbox: "Why so sarcastic today? I sensed a bit of negativity in each of the entries today. ... Given that, I still enjoy your blog on most days." I doubt that this will be one of those days.