While catching up on a stack of Wall Street Journals, I read a powerful letter to the editor that crystalizes another negative impact of high taxes. The letter, signed by Steve Meyer of Lakewood, Colorado, was published March 1. He wrote:
“As a job-market dropout (“More Americans Are Leaving the Work Force” by Jon E. Hilsenrath, Feb. 17) I wish to add another reason for leaving the work force; high taxation of second incomes in two-income families. I had an annual salary of about $68,000 in 2000. I paid 8% of my income ($5,440) to my home state of Minnesota, 36% ($24,480) in federal income taxes, and 7.65% ($5,202) in Social Security and Medicare taxes, which my employer matched (an additional $5,202). My take-home pay of $32,878 while the government was receiving $40,324 from my effort greatly reduced my motivation for staying employed.”