Good article by Larry Kudlow:
“It rarely occurs to economic thinkers that people work or invest in order to generate the highest possible after-tax return. When it pays more, after tax, to take investment risks, more individuals are willing to change their behavior and assume greater risk. Tax risk less, and get more of it. Tax production more, and get less of it.
This was the essence of Reaganomics. It recognized the power of the individual to make choices in daily economic life. It also recognized the crucial economic theory of marginality. At the margin, what truly matters is the extra work effort, the extra investment dollar and the extra unit of profit, all measured in after-tax terms.”