In response to:

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

Dr Chaz Wrote: Nov 15, 2012 9:15 AM
The Dem pols know that their tax policies are counterproductive to growth, but they're more interested in class warfare to stimulate the vote of an ignorant electorate than creating a prosperous America. Of course, the Reps have done a miserable job of communicating basic economic facts of life re feeding the US economic engine. Perhaps more importantly for this election, the Reps failed to explain how leftist policies in the repeal of Glass-Steagall and the Dem DOJ pressure per the Community Reinvestment Act forcing mortgage process irresponsibility led to the fiscal crisis of 2008. Result: Obama was able to convince many indies and mods that Romney would be Bush redux and we lost.

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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