I can tell you first hand that "the youth" aren't thinking about margins and taxes when they are deciding between taking a job and joining the illegal drug market. They're thinking about how long it takes to earn a dollar.
Yes, they don't think about it directly, but this is what is responsible for how long they need to work to make a dollar. I thought that is obvious... Essentially in the legal market, the more you work, the less you get thanks to progressive tax.
The taxation scheme makes virtually 0 difference. No one working as a software engineer is thinking, man this progressive tax is too high, time to quit facebook and sell crack. People working min wage are paying way less tax under a progressive taxation scheme. I really don't understand this thinking.
