There are some who think this is incorrect.
Let's think about this.
Taxes cut, I keep more of my money earned. I am therefore more motivated UNLESS a) I have reached my target income and trade off work for leisure and also b) I am ABLE to cut down on my hours. (How many jobs let you do this?)
So either a) I will look for more work, more overtime (as the rewards have risen) or there will be no reaction other than short-term benefit.
Theerfore out of ten people, 7 may have no effect or only short-term, three will work more overtime.
Then there's the self-employed. They work hard anyway but cut their tax and the rewards are greater and so they may work even harder. Maybe they have more control over their work-life balance, maybe less.
If tax cuts don't make people work harder then why do companies offer higher wages to attract new workers? Why offer productivity bonuses?
MCQ Walkthrough 9708/32 (India) (Q21 - Q30)
2 months ago