In response to:

The Laffer Curve Strikes Again: Revenues Falling in Spite of (or Perhaps Because of) Spain’s Punitive Corporate Tax Rate

Kenneth L. Wrote: Oct 04, 2012 10:47 AM

"The more ANY Government takes out of any economy, the less there is for growth..." jbazen, you've nailed it! There is ample evidence that the Laffer curve reflects reality, and Dan Mitchell has done a great job explaining it in recent articles. But the simple fact is that government crowds out private sector economic activity. Imagine yourself on a desert island with 100 others, no contact with the outside world (no free lunch). How many people would you have in government, and how many would you prefer to be producing the "stuff" you need, housing, food, means of transportation, etc.? Why do we think government should be doing all the things the politicians want?

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Kenneth L. Wrote: Oct 04, 2012 10:54 AM

It's not about feeding the poor, either. Just look at the U.S. government for a pretty good example of politicians run amuck. We don't have to go to Europe for this bad example.
Somebody's got to look at the big picture and rein this monster in. During a 20 year period during which U.S. population grew 25%, the federal budget increased 75%. And this was a period ending before the current economic crisis and recession. How could that increase have been necessary or appropriate?
And now, of course, trillion dollar plus deficits adding to the debt at a dizzying rate! It's a terrifying situation.

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