In response to:

The Joint Committee on Taxation’s Head-in-the-Sand Approach to the Laffer Curve

cdavis211 Wrote: Nov 17, 2012 4:27 PM
He did not just mention dynamic scoring, he sneered at the notion. His complete disregard for history and the fundamentals of economics is leading the US to an inevitable outcome.

I’m a big believer in the Laffer Curve, which is the common-sense proposition that changes in tax rates don’t automatically mean proportional changes in tax revenue. This is because you also have to think about what happens to taxable income, which can move up or down in response to changes in tax policy.

The key thing to understand is that incentives matter. If you raise tax rates and therefore increase the cost the engaging in productive behavior, people will be less likely to work, save, invest, and be entrepreneurial. And they’ll figure out ways to engage in tax avoidance and...

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