Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: SmithL
Let's see if the morons in Sacrament can get this.

There's a Tax-rate vs Tax-Revenue Curve. Plot Tax-Rate on X-Axis and Tax-Revenue on Y-Axis. The curve looks similiar to a bell curve. If you tax @ 0% you get no revenue. If you tax @ 100% you end economic activity and get no money. Therefore there's an optimum tax-rate that generates the maximum revenue (slope of curve is at zero). If you increase tax rate and you get less revenue then you are on the downward slope of curve. You need to go back in the opposite direction. Funny how the folks in Sac (are you listening Arnold & Democrats) just can't seem to get this.
23 posted on 05/07/2010 1:33:18 PM PDT by truthguy (Good intentions are not enough!)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: truthguy

It is only that simple if you have a flat rate tax. When you have a bunch of tax brackets and each of those is variable based on deductions, credits, and exemptions, it isn’t so clear any more.

Government should not have the power to tax people differently. Because as long as it has this power, and you lose the people that were preyed upon, you’ve lost them for a long time. They know they can’t believe any promises that they won’t become prey again, so they won’t move back.

CA should be the first state in the union to guarantee via its Constitution a fixed flat rate tax system. It needs to spell out the specific rates — like “no individual’s total state income tax burden will ever exceed 3%,” and the same for any sales tax rate.


86 posted on 05/08/2010 1:21:31 AM PDT by Kellis91789 (Democrat: Someone who supports killing children, but protests executing convicted murderers.)
[ Post Reply | Private Reply | To 23 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson