Re: Tax Cuts Don't Boost Revenues

>>>>> Ernst Blofeld writes:

   Ernst> 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.

   Ernst> Or you're not understanding it.

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

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

Laffer laughs at the notion that there is a simple, unique, maximum in his
curve.  It is an inanely simplistic notion.


-- 
Andrew Hall
(Now reading Usenet in alt.fan.dan-quayle...)


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getting [cruise missiles] more accurate so that we can have precise
precision.
                -- Vice President Dan Quayle referring to his legislative
                   work dealing with cruise missiles