[Sherman Logan]

The Laffer Curve is usually misunderstood. The professor is not responsible for this.

Conservatives and liberals both often seem to think the LC says that reductions in tax rates will always result in increases in revenues. This is inaccurate.

There is a peak in the curve where the maximum revenue is produced. It a system is to the right of that peak, increases in tax rates will cause a drop in total revenue.

But if one is to the left of the peak, increases in tax rates will cause an increase in total revenue.

Both liberals and conservatives, when discussing the LC, always seem to assume we are on the right side of the peak. But that doesn’t necessarily follow.

Before attempting to use (or discredit) the LC, one should demonstrate why we are presently left or right of the peak.

[Armando Guerra]

Thank you for your correct statement. I've gotten in arguments with liberals who disagree with the Laffer Curve. I always explain it in simple terms. With a 0% tax rate, revenues are 0. With a 100% tax rate, who is going to bother working? Tax revenues will be 0 or close to it (assuming there are some people who may show up for work out of boredom). Somewhere in between there is a rate that maximizes revenue. Argue the shape of the curve or where we are on the curve but the Laffer Curve itself is indisputable.

[SierraWasp]

Conservatives and liberals both often seem to think the LC says that reductions in tax rates will always result in increases in revenues. This is inaccurate."

It, the Laffer Curve, has worked every single time it has been tried and that's why the libs hate it!!!

This completely liberal author is a hold-over from when MarketWatch.com was known as CBSMarketWatch.com. This entire piece is a gigantic steaming pantload to put it mildly IMO!!!