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The Laffer Curve Wreaks Havoc in the United Kingdom

Randy3153 Wrote: Jul 02, 2012 5:21 PM
I saw a recent statistic that despite changes in tax policy ranging from max rates of 25 to 90%, revenue remains fairly static at 18% of GDP. Deficits occur and debt builds because the economy contracts or stagnates. We would need a $20 trillion economy to pay for our current national wants. We have a $14 Trillion?. Our tax (including tariff) policy shouldn't punish wealth creation anywhere. Higher taxes (and tariffs) destroy wealth at home and abroad. They diminish freedom for all of us.

Back in 2010, I excoriated the new Prime Minister of the United Kingdom, noting that David Cameron was increasing tax rates and expanding the burden of government spending (including an increase in the capital gains tax!).

I also criticized Cameron for leaving in place the 50 percent income tax rate imposed by his feckless predecessor, and was not surprised when experts began to warn that this class-warfare tax hike might actually result in less revenue because the reduction in taxable income could be more significant than the increase in the tax rate.

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