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
If you're a theist pray for... if you're a student of quantum physics conjure the intense image of... the collapse of the Obama administration and its radical agenda. Prayer and collective consciousness from a hundred million minds can deliver some amazing results.

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...

Related Tags: Laffer Curve