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They way I see it, a graduated tax system does not discourage people from working hard, but it does encourage them to create more jobs rather than see the money go to the government.
If a business is making a profit, the business owner can either take that money as income or re-invest that money in his business or employees. If, for instance, that business owner sees that any income they take over $250k, is going to get taxed at a much higher rate, might they rather choose to higher another worker to either expand their business or take over some of their responsibilities? Doesn't this encourage the expansion of the economy?
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