In response to:

Prophets and Losses: Part II

Moonbat Exterminator Wrote: Feb 06, 2013 12:43 PM
The complexity of a free market is elucidated brilliantly in the essay I, Pencil by Lawrence Read. It should be included in every economics 101 textbook, right up front. The problem with most lib computations is not accuracy but insight. They treat the aggregate decisions of countless individuals, each working in his own self interest as a black box. They abstract away the negative feedback effect that their proposals exert. The magic phrase of the experimenter is "all things being equal". Where the calculations fall apart is that in the real world, all thinga are NEVER equal. Thus the observation that somewhat lower tax rates in reality produce more revenue and raising tax rates lowers revenues.

Editor's Note: This column is part II in a series. Part I can be found here.

People on both sides of tax issues often speak of such things as a "$300 billion tax increase" or a "$500 billion tax decrease." That is fine if they are looking back at something that has already happened. But it can be sheer nonsense if they are talking about a proposed increase or decrease in the tax rate.

The government can only raise or lower the tax rate. Whether the actual tax revenues that the government will collect as a result will go up or...