Arthur Laffler on Calif: Mowed Down by Taxes

Wall Street Journal ^ | Oct 2, 2003 | Arthur Laffler

[The Raven]

SAN DIEGO -- California's recall effort is based 100% on the state's fiscal crisis. Listen up candidates: California's progressive (steeply graduated) tax structure is the cause of the fiscal crisis, which itself is the first-born of the union between fuzzy logic and misplaced emotions. Hurting the prosperous is not an honorable objective, and hurting the prosperous does not help the poor, which is an honorable objective. There is no solution to California's crisis save redressing the fundamental premise underlying California's progressive tax codes.

[The Raven]

We as a group need to get a quick, effective response to the "tax the rich" jargon.

[Support Free Republic]

Free Republic. More Bang For The Buck!
	Donate Here By Secure Server Or mail checks to FreeRepublic , LLC PO BOX 9771 FRESNO, CA 93794 or you can use PayPal at Jimrob@psnw.com
STOP BY AND BUMP THE FUNDRAISER THREAD- It is in the breaking news sidebar!

[nathanbedford]

Sorry, really truly sorry, I am not exercised about libertarians until thy are committed to my social concerns. I will vote correctly but I will remain quiescent.

[DoctorZIn]

Join Us…Your One Thread To All The California Recall News Threads!

Want on our daily or major news ping lists? Freepmail DoctorZin

[B.Bumbleberry]

Laffer, of course, is right except for the corporate taxes. Every business's customers pays for its corporate taxes. In other words, they're just passed on to us. So better to do away with the corporate taxes altogether. Business risks are lowered and businesses are more competitive. Better to increase personal taxes to make up for the losses than to have indirect taxation that increases the costs and risks of businesses to accomplish the same thing.

[Forgiven_Sinner]

"We as a group need to get a quick, effective response to the "tax the rich" jargon."

I have one: "Who do you think will spend money more wisely, more productively: the rich or the government?"

If they say "the rich", I say, "Then don't take money from them and give it to the government."

If they say "the government", I say, "Give me one example of where the government spends money more wisely, efficiently, and cheaper than private enterprise."

F.S.

[Forgiven_Sinner]

" Laffer, of course, is right except for the corporate taxes. Every business's customers pays for its corporate taxes. In other words, they're just passed on to us. So better to do away with the corporate taxes altogether. Business risks are lowered and businesses are more competitive. Better to increase personal taxes to make up for the losses than to have indirect taxation that increases the costs and risks of businesses to accomplish the same thing."

You are correct. This is Milton Friedman's point of view. The only exception I can think of are foreign corporations. They would not be taxed and their US profits would flow to foreign stockholders. I would tax any profits that flow out of the US.

[The Raven]

How much harm does increasing taxes do to the wealth of the nation?