“Thus, total individual tax receipts ballooned by 70% from 1924 to 1928; and, throughout the 1920s, the share of income taxes paid by earners of over $100,000 a year doubled. Meanwhile, Coolidge held spending constant, allowing him to eliminate nearly a quarter of the national debt and leave it fully 29% smaller than it was when Harding took office.”
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by Henry Oliner ‘Trickle down’ is the preferred pejorative of the left towards any tax cut that benefits those who actually pay taxes. The people who use it sound like idiots to anyone with a basic knowledge of economics. It
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from An Anti-Growth Tax Cut by Kevin Williamson in The National Review In economic terms, there are two things going on with those revenue and deficit numbers. One is the structural issue, i.e., tax policy, spending, etc. The other is
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From Bloomberg Businessweek Haley Griffin writes The Napkin Doodle That Launched the Supply-Side Revolution How would you classify the Laffer Curve today? Laffer: It’s the same as always. It works. It’s not Republican, it’s not Democratic, it’s not conservative, it’s not liberal,
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from Dan Mitchel at International Liberty, The Rahn Curve, the Laffer Curve, and Walter Williams excerpt: For the uninitiated, the Rahn Curve is the common-sense notion that some government is helpful for prosperous markets but too much government is harmful to economic performance.
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Daniel Hannan writes in the UK The Telegraph with Memo to the Occupy Protesters: here are ten things we evil capitalists really think. Point 3: If you want the rich to pay more, create a flatter and simpler tax system.
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The Laffer Curve is an explanation of the dynamic effects of tax increases or decreases. In its basic model it looks like this: Of course this is a model to explain that there are points where raising tax rates may
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Our economy is in dangerous territory. Obama inherited a mess; a bubble that was a culmination and a combination of reckless leverage, poor regulation, misguided fiscal policy, major shifts in the global economy, and mistaken monetary policy. A lot of
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Scott Grannis at Calafia Beach Pundit used one of the best illustrations of the effectiveness of the Laffer Curve is his posting, Our Highly Progressive Tax Code. An excerpt: …since only a relative handful of taxpayers pay the lion’s share
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One of the reasons politicians and economists fail to understand the Laffer Curve is the confusion of work with productivity. Politicians understand that higher taxes may make people work harder to attain the same level of after tax income, but
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The Laffer Curve is considered by its opponents to be a form of ‘voodoo economics’, to use the phrase coined by George H. Bush when he ran against Ronald Reagan before becoming his vice president. But the Laffer Curve is
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