Come again? The Laffer Curve... you know, the higher the rates the lower the collections, and its inverse.
Simply put, what works for businesses (which is what I believe Prof. Laffer’s point was) works for individuals. Which is to say there is a revenue maximizing rate for income taxes.
One problem I’ve always had with the Laffer Curve is how it’s used to justify tax cuts—as if the goal of tax policy should be to have the largest possible revenue. Maybe we conservatives should start advocating tax hikes. If the economy slows and revenue slides, then they’d have to make budget cuts, wouldn’t they? Then again, socialists love recessions, and they’d blame capitalism for the downturn. Nevermind.