more-inPeople who support higher taxes on high-income earners usually justify such progressive taxation for a reason. Apart from saying that it is fair, they argue that taxes on high-income individuals usually have little impact on their incentive to work hard. This view comes from the belief that high-income individuals already earn enough income after tax to keep them working hard to help the economy. The game, however, changes when high-income individuals can escape from high-tax regions. In addition, the fact that high-income individuals take the effort to migrate to low-tax regions probably also supports the observation that everyone, even the rich, like to keep the fruits of their labour.

Source: The Hindu January 15, 2018 18:45 UTC