Learn it. Know it. Live it!
Learn it. Know it. Live it!
Good post. All govt legislators should be aware of the Laffer curve, but democrats are immune to common sense.
The tricky part, I think is to know whether we're in the first part or the second part of the tax-rate axis. It also shows that we cannot have very low tax rates either.
In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the... Anyone? Anyone?... the Great Depression, passed the... Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act? Which, anyone? Raised or lowered?... raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression. Today we have a similar debate over this. Anyone know what this is? Class? Anyone? Anyone? Anyone seen this before? The Laffer Curve. Anyone know what this says? It says that at this point on the revenue curve, you will get exactly the same amount of revenue as at this point. This is very controversial. Does anyone know what Vice President Bush called this in 1980? Anyone? Something-d-o-o economics. "Voodoo"
Perhaps a Certain Someone long ago named it a "tithe" as Elizabethan English later put it.
Arthur Laffer is the man !
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I fought a battle on another thread in May after The Washington Post did a hitjob tagging Bush's tax cuts as a return to "voodoo economics".
Apparently, voodoo (ie. the Laffer curve) works.
That Post thread:
http://www.freerepublic.com/focus/f-news/1632357/posts
Should we be on the other side of the Optimal Tax Rate is anyone here going to call for more taxes?