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To: Ernest_at_the_Beach
if it's going to help with the deficit

I was an Econ major in the early '80's, when "trickle down" Economics was being debated. I have YET to hear the Laffer Curve mentioned in ANY debate about tax cuts other than in an Econ class. It is a standard bell curve, with Gov revinues on the left bar, and tax rates on the bottom bar. There is no Economist that denys the accuracy of the Laffer curve, there is only debate as to how far to the right the curent tax rates are. The Kenedy (John F; after his death) and the Reagan tax cuts PROVED that we were on the wrong side of the curve. Yet, even on "right wing" talk radio, Mr Laffer is never mentioned. Rush may talk about the Reagan tax cuts doubling Fed revinue, but doesn't elaborate.

Let's put it this way. If your tax rate was 100%, would you go to work every day? Heck no you wouldn't! What would be the point?

The problem is that this is never explained to the masses, so they think that the only way to eleminate a deficit it to RAISE taxes, when the exact opposite it true! Lower taxes and you will GROW YOUR WAY OUT of the deficit; IF you control government spending!

MARK A SITY
http://www.logic101.net/

7 posted on 01/11/2003 8:27:38 AM PST by logic101.net
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To: logic101.net
>Economist that denys the accuracy of the Laffer curve, there is only debate as to how far to the right the curent tax rates are.

I've always felt that as the total govt tax rake approaches 50% people who are self-employed or are professionals (people who have some control over their income) will forgoe income in favor of free time. Over 50%, people of all political stripes will instinctively revolt, avoid taxes, cheat, or plain not work.

29 posted on 01/11/2003 3:16:48 PM PST by Dialup Llama
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