The Laffer Curve:
Posted on 01/19/2009 7:53:49 AM PST by SeekAndFind
If President Obama wants to help the economy enormously - and make life simpler for countless Americans - he has a powerful tool at his disposal: the flat tax.
My advice for him would be to push for an efficient, low-rate flat tax to replace the entire current maze of confusing, complicated, counterproductive federal taxes. If he succeeds, the results would be stunning.
Obama certainly has both the political mandate and content of character to get this done. Remember, too, that the idea has a long pedigree in Democratic politics: Its origins lie with Presidents Harry Truman and John Kennedy and Sens. Sam Nunn and Gary Hart; 1992 presidential contender Jerry Brown also backed it.
Why would a flat tax do so much good? Consider: Federal tax codes today are wildly dysfunctional - and extremely unpopular.
Taxes act as negative incentives, prompting people to act so as to avoid paying them. Some Americans simply don't report taxable income. Others resort to tax shelters and specialty tax lawyers, or otherwise do what they can to reduce their tax liabilities - including going out of business.
But we can't eliminate all taxes; we need some to generate revenue to run government. So it makes sense to focus on the highest rates, which produce the greatest disincentives.
In the end, the best tax code is one that does the least damage to the economy while collecting requisite revenues for government. And that's the idea behind the flat tax: By constructing the broadest possible tax base- subjecting the greatest amount of economic activity to the tax - government can afford to impose the lowest possible rates and still ensure adequate revenues.
These low rates will provide folks with the least incentive to avoid taxes.
(Excerpt) Read more at nypost.com ...
So simple even Geithner can pay them.
My husband has always been an avid supporter of the flat tax.
I once wrote about the Laffer Curve and he it needs to be modified to have an “Atlas Shrugged Point” on it were each of us can define when we want to get off.
Countdown until ‘fairtaxers’ go all nazi and jump the thread...
3....2....1....
The Flat Tax. GOOD IDEAS NEVER GO OUT OF STYLE.
Alas, the socialists cannot ‘afford’ a great idea like this. They have other uses for people’s money besides (gasp) letting them spend and invest it.
A flawed premise.
A true and honest flat tax would put Zero’s socialism out of business. No “dreg-bum” class that mooches off the producers in America — that is Zero’s ticket to power. The Marxist cannot live without that.
He misses the point. Socialists could care less about prosperity or a working economy. Taxes are an instrument of control NOT revenue. Taxes like guns, are government tools to bring about subservience. Taking away your money, guns and property is taking away your freedom and making you a slave to the state. That is what they want and nothing else.
I have to say I love when the flat tax idea comes up. It’s a wonderful idea economically. I can just imagine, though, the outrage on the left and among the dependent underclass when they realize they might have to pay something back.
Dems have been looking forward to soaking the rich for 8 years. No way they’ll go for a flat tax.
Horse.
uhhhh.
Feathers.
To do that would require giving up the tax system as a tool of social engineering.
That's not in Barry-O's "character", if he has any.
Forget about it. Makes too much sense for Oba Mao to consider.
He is correct - the Federal tax system is extremely complicated, wildly unpopular, and the greatest source of political corruption there is.
Nonetheless, it will NOT be changed. Most Pols on the left seem to be happy with things they way they are (there’s always room for another tax-benefit for some favored group) and no conservative politician would want to face the storm of MSM propoganda that would come from proposing a flat-tax.
That’s funny, because some smart economists did some study to point out how a certain form of flat tax (a once-through flat tax that exempted capital gains) more or less was equivalent to FAIR Tax.
when the socialists are ready to have a $2 trillion deficit *AND* make the Bush tax cuts lapse *AND* add more taxes, the Flat vs Fair argument has an ‘angels on the head of a pin’ aspect to it.
Practical politics dictate we figure out a way to make the system better now, and not get stuck on proposals that wont ever happen.
Actually John McCain did push for this. He proposed an ALTERNATIVE FLAT WAY OF FILING YOUR TAXES ( although the traditional way of filing your taxes is still an alternative).
I thought it was a good idea. Once people realize the advantage of the flat tax way of filing (with the IRS off your back), the traditional way of filing will wither on the vine and die.
I am all for it. It is TRULY PRO-CHOICE ( without killing a baby :)
“These low rates will provide folks with the least incentive to avoid taxes.”
....Avoid taxes my butt!....this country is headed towards mass tax EVASION...everybody I know is fed up with taxes taking 60% of their money....my ancestors in 1776 knew how to give themselves a tax cut....they started loading guns!
And to think we had a GOP president and congress for 6 years, and the tax code only got more complicated. Jack*sses.
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