In response to:

Laffer Curve Warning about the Economy and Tax Revenue for President Obama and other Class Warriors

Cari.B Wrote: Nov 29, 2012 8:57 PM
If even one of our Leaders had an ounce of common sense they would know any talk of raising more revenue is an absurd proposition when we don’t know the actual cost of government. By actual cost, I mean those things that the Federal government is supposed to provide for us by its actual Constitutional directives. When we cut their size and scope back down to those important but very limited requirements, we should be able to pay our debt and reduce the tax burden on us all. Just imagine how much more effective in Libya and during Katrina and Sandy the government would have been if they weren’t so distracted doing everything else but their jobs. If only there was an ounce of common sense in Washington D.C.

Being a thoughtful and kind person, I offered some advice last year to Barack Obama. I cited some powerful IRS data from the 1980s to demonstrate that there is not a simplistic linear relationship between tax rates and tax revenue.

In other words, just as a restaurant owner knows that a 20-percent increase in prices doesn’t translate into a 20-percent increase in revenue because of lost sales, politicians should understand that higher tax rates don’t mean an automatic and concomitant increase in tax revenue.

This is the infamous Laffer Curve, and it’s simply the common-sense recognition that you should...

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