The Laffer Curve is the simple notion that higher tax rates don’t necessarily generate as much loot as politicians expect because taxpayers have less incentive to earn and/or report income.
And it works in both directions. Lower tax rates don’t lose as much revenue as politicians fear because better tax policy leads to more taxable income.
In a few cases, higher tax rates may even lose revenue and lower tax rates may generate additional receipts. The IRS collected a lot more tax from upper-income taxpayers, for instance, after Reagan slashed the top tax rate from 70 percent to 28 percent.
Over the past few years, I’ve shown lots of evidence from around the world (England, Spain, and France) and in various states (Illinois, Oregon, Florida, Maryland, and New York) to make the case that it is foolish to ignore…
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Ugh…this movie a night thing is killing me. I should have done some prep work in September (which I will be using November for to work on the Christmas movie list)…and this has taken time from writing more philosophically based blogs. I’m sorry. I know that’s why most of you come here. In the mean time I will let someone else do the talking…
And I don’t agree with this guys goals, I’m more an individual Happiness person than a social justice guy, I’m not opposed to the concept but it is not my goal (but then again I”m a conservative not a libertarian), but I can see where it could win some of you over (I think he also misinterprets Adam Smith and Milton Friedman who talked about how capitalism is better for the poor as a great side effect, not as the primary reason to adopt it) and if it gets the free market I want, who am I to complain.
Filed under Capitalism, Civil Liberties, Constitution, Debt, Economics, Evils of Liberalism, Government is corrupt, Government is useless, Long Term Thinking, politics, Taxes, Tyranny, Welfare