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Laffer Curve Warning about the Economy and Tax Revenue for President Obama and other Class Warriors

petroleum engineer Wrote: Nov 29, 2012 3:11 PM

Recently spotted: INEPTOCRACY - A system of goevernment where the least capable to lead are elected by the least capable of producing, and where members of society least likely to sustain themselves or succeed, are rewarded by goods and services paid for by the confiscated wealth of a diminishing number of producers. I think it summarizes the results of last November the 6th election.

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Laffer Curve Warning about the Economy and Tax Revenue for President Obama and other Class Warriors

Being a thoughtful and kind person, I offered some advice last year to Barack Obama. I cited some powerful IRS data from the 1980s to demonstrate that there is not a simplistic linear relationship between tax rates and tax revenue.

In other words, just as a restaurant owner knows that a 20-percent increase in prices doesn’t translate into a 20-percent increase in revenue because of lost sales, politicians should understand that higher tax rates don’t mean an automatic and concomitant increase in tax revenue.

This is the infamous Laffer Curve, and it’s simply the common-sense recognition that you should...

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