In response to:

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

Kenneth L. Wrote: Nov 15, 2012 10:25 AM
Obama specifically mentioned dynamic scoring in his press conference, called it "sorta-kinda" increase in revenue. This is not a new subject with Mr. Mitchell, although his thorough coverage of the issue has been excellent and, one hopes, helpful. The Wall Street Journal has made the identical point about a bias in favor of tax rate increases many times over many years. It is a scandal that so many people simply refuse to understand an issue that puzzles them at the same time it threatens their ideological view.
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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