Re: Tax Cuts Don't Boost Revenues

On Feb 18, 9:01=A0pm, gjohn...@[EMAIL PROTECTED]
 wrote:

> > > =A0If the opposite was true then lowering the tax rate to zero would
> > > boost tax revenues to infinite.
>
> > See Laffer Curve.
>
> =A0Either the Laffer Curve is wrong, or Republicans are reading it
> wrong.

Or you're not understanding it.

The Laffer curve predicts zero revenue at 0% tax rate and zero revenue
at 100% tax rate.  There's a maxima somewhere in between. Unless you
think revenue suddenly falls off a cliff at 99.99999% tax rates, the
revenue curve is declining somewhere to the right of the maxima.

And besides, there are plenty of reasons not to tax at the maximum
revenue gathering point. For example, the government is doing stuff
with the money that it shouldn't be doing in the first place.