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To: paudio
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.

There are 2 components to the equation. Income and tax rate. Our side believes in increasing the revenue by clearing the path for people to earn more. The other side would rather increase the rate to increase revenue and also use the rate to punish those who earn "too much". We must understand that the curve is dynamic, not static. The lower the tax rate, the more income can be produced by tax payers. I support the philosophy that takes the rate as close to 0% as it can go. Not the other direction.

58 posted on 10/06/2006 3:38:42 PM PDT by Niteranger68 (I gigged your peace frog.)
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To: RacerF150
The lower the tax rate, the more income can be produced by tax payers. I support the philosophy that takes the rate as close to 0% as it can go.

But Laffer curve doesn't show it that way. To follow your description, it would have had only the second part of the X-axis, but starting from 0% tax rate. Don't get me wrong, I understand what you're saying, and agree with it. But, having 0% tax rate is just not supported by the curve you showed.

63 posted on 10/06/2006 4:23:34 PM PDT by paudio (Universal Human Rights and Multiculturalism: Liberals want to have cake and eat it too!)
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