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To: Cincinatus' Wife
Hauser's law posits that the federal government cannot take more than about 19.5% of national income through taxation

We're close to that already, at about 18%. [link] or google "GDP" and follow the graph shown.

27 posted on 09/30/2011 9:09:20 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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Oops, meant 16%.

Not much deviation though, depends on how you squint at the numbers. Upshot is we can’t squeeze much more tax revenue out of the economy no matter what: as the number approaches 19.5%, economic activity slows/adjusts to prevent getting there.

Elsewhere someone reported a 1% increase in tax revenue translates to a ~3% decrease in GDP.


32 posted on 09/30/2011 9:21:23 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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