Re: Tax Cuts Don't Boost Revenues

Ernst Blofeld wrote:

> On Feb 18, 9:01 pm, gjohn...@[EMAIL PROTECTED]
 wrote:
> 
> 
>>>> If the opposite was true then lowering the tax rate to zero would
>>>>boost tax revenues to infinite.
>>
>>>See Laffer Curve.
>>
>> Either 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.

The Laughable curve isn't based on real economics.

>  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.

You've never explained how Lockheed/Martin, for example, would get by
if they didn't pay taxes.

> 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.

Like invading Iraq under false pretenses.  Yes, we know.

--Jeff

-- 
It is only those who have neither
fired a shot nor heard the shrieks
and groans of the wounded who cry
aloud for blood, more vengeance, more
desolation.  War is hell.
--William Te***seh Sherman