High marginal tax rates can create perverse economic incentives where individuals rationally choose lower-income jobs to maximize their take-home pay, as demonstrated by university graduates in Estonia who work in shoe sales because earning above $60,000 annually results in such high taxes that their net income would actually decrease.
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Why University Grads Are Quitting In Estonia... 🇪🇪🤯Added:
He's from Estonia.
>> Yeah.
>> And he has friends in Estonia that have university degrees that choose to work in shoe sales because if you [clears throat] make more than $60,000 a year, your taxes are so high, it actually benefits you to make less money. And so they just give up.
>> Yeah, they nail you.
>> And they just exist, and that's why he fled why he came to America. So those are the type of people that are the least >> Yeah.
>> accepting of any kind of socialism.
They're they're the least charitable when people start talking about socialism. Talk Talk to socialism about someone who fled Venezuela, you know, or Cuba. They they'll [ __ ] stab you. You know, they get they get angry and crazy because they know what the consequences are, the real world consequences are.
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