Wednesday, November 7, 2012

Incentives according to Keith Richards


More from Keith Richards, this time on incentives:

"The tax rate in the early '70's on the highest earners was 83 percent, and that went up to 98 percent for investments on so-called unearned income. So that's the same as being told to leave the country."


"The last thing I think the powers that be expected when they hit us with super-super tax is that we'd say, fine, we'll leave. We'll be another one not paying tax to you. They just didn't factor that in." 


"Sit in England and they'd give us a penny out of every pound we earned? We had no desire to be closed down. And so we upped and went to France."
This discussion was preceded by his recounting of his addiction to heroin and use of many drugs. It is likely during the time of these decisions he was on heroin and almost certain he was using many mind altering substances. Only the finest quality, he tell us.

So even a heroin addict recognizes and responds to marginal tax rates.


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