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Keyword: laffercurve

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  • Laffer Curve Needs Change in Terminology From Government Speak to Individual Rights and Freedom

    07/23/2016 1:01:38 PM PDT · by Jim 0216 · 8 replies
    Love to see everyone enjoying the afterglow of this amazing GOP Convention. Haven’t felt like this politically since 1980. I think morning is once again coming to America. Art Laffer, economist, has analyzed Trumps chances and it brought up some thoughts I have on the Laffer Curve. I love the curve but I hate the terminology... Laffer and Reagan brought us an unprecedented and historic 25 years of growth and prosperity until the Left finally shut it down. Tax cuts are a must, but we need to flip the reasoning - we need to change the terminology and the paradigm...
  • Art Laffer: Trump Should Win Easily

    07/23/2016 11:48:27 AM PDT · by Jim 0216 · 54 replies ^ | JUL 19, 2016 | FRED BARNES
    Art Laffer is a famous economist, one of the brains behind President Ronald Reagan's supply-side tax cuts in 1981. But he was also a political adviser to Reagan and other presidential candidates. Based on history rather than polls or demographics, he insists Donald Trump will win the presidential race—and win easily. History is an argument not often heard in presidential elections except in one case: the likelihood that after one party holds the White House for eight years, that party probably won't win four more years. The one exception in the past half-century was the election of George H.W. Bush...
  • Economist: GOP may win 47 states in general election

    01/10/2016 8:25:59 AM PST · by Rockitz · 59 replies
    The Hill ^ | 10 January 2016 | Bradford Richardson
    Supply-side economist Arthur Laffer is predicting Republicans will win the White House in a landslide this year, regardless of the nominee. “I would be surprised if the Republicans don’t take 45, 46, 47 states out of the 50,” Laffer told host John Catsimatidis on “The Cats Roundtable” on New York’s AM-970 on Sunday. “I mean, I think we’re going to landslide this election.” Laffer, who served in various positions in the Nixon, Ford and Reagan administrations, said he is bullish on the entire Republican primary field. “When I look at these candidates, I don’t see one of them who wouldn’t...

    09/29/2015 10:23:03 AM PDT · by WilliamofCarmichael · 18 replies
    TRUMP MAKE AMERICA GREAT AGAIN ^ | 9/28/2015 | Donald J. Trump
    This is a HTML LIST version of full text of TAX REFORM THAT WILL MAKE AMERICA GREAT AGAIN [Full text of Trump's Tax plan]. Personally I find it easier to get information when the entire document is in a kind of outline format. Hover underlined words for definitions.
  • Two Big Fiscal Lessons from Colorado’s Pot Legalization

    02/14/2015 7:49:46 AM PST · by Kaslin · 19 replies ^ | February 14, 2015 | Daniel J. Mitchell
    Regular readers know that I don’t approve of drug use, but that I also favor legalization because the Drug War has been a costly and ineffective failure.(And it’s led to horrible policies such as intrusive money-laundering laws and Orwellian asset-forfeiture laws).So I was happy when folks in Colorado voted to decriminalize marijuana use, even if part of me didn’t like the idea that politicians would gain a new source of tax revenue.If nothing else, what’s happening in Colorado (and Washington state) will be an interesting social experiment.And even though we only have a modest bit of data, I’m going to be...
  • The Left’s Position on the Laffer Curve and Dynamic Scoring:

    01/05/2015 7:49:45 AM PST · by Kaslin · 7 replies ^ | January 5, 2015 | Daniel J. Mitchell
    Kleinbard’s second argument against dynamic scoring is based on his assumption that bigger government is good for the economy since the government spends money wisely.I’m not joking. Federal deficits are on an unsustainable path (as it happens, because of undertaxation, not excessive spending). Simply cutting taxes against the headwind of structural deficits leads to lower growth, as government borrowing soaks up an ever-increasing share of savings. …these models are political statements. They show the biggest economic effects by assuming that tax cuts are financed by unspecified future spending cuts. The smaller size of government, not the tax cuts by themselves,...
  • The Laffer Curve and Limits to Class Warfare Tax Policy

    09/21/2014 11:29:08 AM PDT · by Kaslin · 15 replies ^ | September 21, 2014 | Daniel J. Mitchell
    IÂ’m a big advocate of the Laffer Curve. Simply stated, itÂ’s absurdly inaccurate to think that taxpayers and the economy are insensitive to changes in tax policy.Yet bureaucracies such as the Joint Committee on Taxation basically assume that the economy will be unaffected and that tax revenues will jump dramatically if tax rates are boosted by, say, 100 percent.In the real world, however, big changes in tax policy can and will lead to changes in taxable income. In other words, incentives matter. If the government punishes you more for earning more income, you will figure out ways to reduce the...
  • In The Past 15 Years 9 States With No Income Tax + $146B 9 States With Highest Tax Lost $107B

    04/24/2014 8:52:13 PM PDT · by lbryce · 13 replies ^ | April 24, 2014 | Staff
    Consider sharing with your Facebook friends. Taxes Are Too Damn High! April 23, 2014 by Free The Future Taxes collected this year hit a new all-time record! This means that Americans pay more in taxes than food, housing, and clothing combined! Lower taxes means you get to keep more of your hard-earned money. Lower taxes mean the economy can grow. Lower taxes are better for everyone. Sign the petition if you agree “Taxes Are Too Damn High!” Click on the bottom of each page to link through to the following page up until you get to the Facebook sign...
  • A Primer on the Laffer Curve to Help Understand Why Obama’s Class-Warfare Tax Policy Won’t Work

    02/08/2014 6:19:40 AM PST · by Kaslin · 11 replies ^ | February 8, 2014 | Daniel J. Mitchell
    My main goal for fiscal policy is shrinking the size and scope of the federal government and lowering the burden of government spending. But I’m also motivated by a desire for better tax policy, which means lower tax rates, less double taxation, and fewer corrupting loopholes and other distortions. One of the big obstacles to good tax policy is that many statists think that higher tax rates on the rich are a simple and easy way of financing bigger government. I’ve tried to explain that soak-the-rich tax policies won’t workbecause upper-income taxpayers have considerable ability to change the timing, level,...
  • Everything You Ever Needed to Know about the Left’s View of Income Inequality,

    01/27/2014 9:47:15 AM PST · by Kaslin · 6 replies> ^ | January 27, 2014 | Daniel J. Mitchell
    If you want to know why the left is wrong about income inequality, you need to watch this Margaret Thatcher video. In just a few minutes, the “Iron Lady” explains how some – perhaps most – statists would be willing to reduce income for the poor if they could impose even greater damage on the rich. This picture is another way of getting across the same point. It was sent to me by Richard Rahn (famous for the Rahn Curve), and it uses two pizzas to show how leftist policies would “solve” inequality. I like this analogy, and not just...
  • ART LAFFER: I Was Wrong About Inflation And The Fed

    01/03/2014 10:22:34 AM PST · by SeekAndFind · 146 replies
    Business Insider ^ | 01/03/2014 | Rob Wile
    Arthur Laffer is a legend in Washington, having been the leading voice on President Ronald Reagan's hawkish Economic Policy Advisory Board.  His "Laffer Curve," which argued that there are diminishing returns after a certain point of taxation, was taken as gospel.If his views are not quite as frequent a presence in public debate, it's largely because Laffer's pet issues, regulation and taxes, took a back seat during the George W. Bush and Barack Obama administrations.  But Laffer himself still occasionally makes appearances on the public scene.And in June of 2009, he penned an op-ed warning excessive quantitative easing would inevitably lead...
  • Can You Spell L-A-F-F-E-R-C-U-R-V-E?

    07/13/2013 11:52:31 AM PDT · by Kaslin · 18 replies ^ | July 13, 2013 | Daniel J. Mitchell
    I’m thinking of inventing a game, sort of a fiscal version of Pin the Tail on the Donkey. Only the way it will work is that there will be a map of the world and the winner will be the blindfolded person who puts their pin closest to a nation such as Australia or Switzerland that has a relatively low risk of long-run fiscal collapse.That won’t be an easy game to win since we have data from the BIS, OECD, and IMF showing that government is growing far too fast in the vast majority of nations. We also know that many states and cities suffer from the same...
  • Getting High with the Laffer Curve

    06/02/2013 4:27:19 AM PDT · by Kaslin · 9 replies ^ | June 2, 2013 | Daniel J. Mitchell
    Two of my favorite things in life are the Laffer Curve and the Georgia Bulldogs. So you know I’m going to approve when an economics professor from the University of Georgia writes a column about the power of the Laffer Curve. And since I’m a libertarian and the specific issue is about curtailing the foolish Drug War, it goes without saying that this is something that belongs on this blog. Especially when we get to celebrate some evidence that statists are acknowledging that tax rates matter! Here are some excerpts from Jeffrey Dorfman’s column at Real Clear Markets. Now that...
  • 10 people who led us to the ‘fiscal cliff’

    11/21/2012 10:50:23 AM PST · by Ernest_at_the_Beach · 57 replies
    Marketwatch ^ | Nov. 21, 2012, 12:55 p.m. EST | Rex Nutting
    Commentary: From Laffer to Obama, they fed our greed and guiltWASHINGTON (MarketWatch) — With our political leaders locked in a fiscal struggle that threatens to throw the economy off a so-called cliff and into recession, you might be wondering how we got to this place. Remember that this supposed fiscal cliff is the direct result of two contradictory impulses in American life: Greed and guilt. Greed for low taxes, a strong military, a strong safety net and lots of government spending for everyone. And guilt that we weren’t paying our way. Read “Stop calling it a ‘fiscal cliff’” All of...
  • California's Laffer Curve: Playing with Fire

    11/18/2012 7:14:37 PM PST · by reaganaut1 · 18 replies
    Econlog ^ | November 12, 2012 | David Henderson
    It's not Go Galt: It's Go to Texas. As I have noted before, the Laffer Curve--the curve that relates tax revenues to tax rates--must be correct. The relevant question is where we are on the Laffer Curve. Are we on the part of the curve--the "prohibitive region"--where an increase in marginal tax rates will reduce revenues and a decrease in marginal tax rates will increase revenues? For the United States, I think the answer is pretty clearly no. But what about for California? We are about to have an empirical test. Proposition 30 garnered about 54 percent of the vote...
  • Bob Woodward Shocker: There Is a Way to Raise Revenue AND Lower Tax Rates

    11/11/2012 3:49:31 PM PST · by Kaslin · 12 replies ^ | November 11, 2012 | Noel Sheppard
    Stop the presses! Stop the presses! The Washington Post's Bob Woodward on The Chris Matthews Show Sunday not only called Democrat visions of balancing the budget by raising taxes on the rich a "fantasy," but he also said "there is a way to...raise more revenue and perhaps lower the rates" (video follows with transcript and commentary): Bob Woodward Shocker: There Is a Way to Raise Revenue AND Lower Tax Rates BOB WOODWARD, WASHINGTON POST: But there's a fantasy element, unfortunately, in this, about the tax increases for the wealthy. It probably is sensible, good policy. It’s theology, as you know,...
  • The Laffer Curve Strikes Again: (Shortened Title)

    10/04/2012 12:38:26 PM PDT · by Kaslin · 8 replies ^ | October 4, 2012 | Daniel J. Mitchell
    I’ve shared evidence from around the world (England, Italy, the United States, and France) and from various states (Illinois, Oregon, Florida,Maryland, and New York) to argue that it is foolish to ignore the Laffer Curve. Not that it makes any difference. I’m slowly coming the conclusion that my friends on the left will never learn – in large part because they’re more interested in punishing success with class warfare tax policy than they are in collecting extra revenue for government.But surely there are some statists who are motivated by emotions other than spite, so I refuse to give up. Let’s look at some evidence from...
  • The Laffer Curve Strikes Again and More Mooching Julia

    05/06/2012 6:21:51 AM PDT · by Kaslin · 8 replies ^ | May 6, 2012 | Daniel J. Mitchell
    I periodically explain the principles of the Laffer Curve, particularly in hopes that I will educate lawmakers that higher tax rates are a bad idea – even if they wind up generating additional revenue. Obama’s proposed class-warfare tax hikes, for instance, might pull in some extra loot for the political class to redistribute. But is it a good idea to give the politicians more money if the economy loses $5 of private output for every $1 of added tax revenue?This is why it is never a good idea to even think about setting tax rates near the revenue-maximizing level.Sadly, many...
  • Laffer’s new book: Good, but a study in the obvious.

    03/28/2012 5:15:13 PM PDT · by landsbaum · 7 replies
    We’ve finished economist Arthur Laffer’s new book, Eureka! How to Fix California, which he delivered to the Register this morning in person while visiting with our Editorial Board. It’s a good. But in a sense it’s a wonder why people have to devote countless hours of research to study such stuff, when the conclusions are so intuitively obvious. In short . . .
  • Speaker Gingrich gets Pres Ronald Reagan economist endorsement (Art Laffer)

    12/27/2011 4:13:06 PM PST · by TBBT · 50 replies ^ | Greta Van Susteren
    Newt Gingrich Endorsed by Architect of Reagan Economic Plan, Economist Arthur Laffer Dyersville, IA – Renowned economist, father of The Laffer Curve and supply-side economics, and architect of the Ronald Reagan economic plan, Arthur Laffer, announced his endorsement today of Newt Gingrich for President of the United States. “Newt has the best plan for jobs and economic growth of any candidate in the field,” said Laffer. “Like Ronald Reagan’s tax cuts and pro-growth policies, Newt’s low individual and corporate tax rates, deregulation and strong dollar monetary policies will create a boom of new investment and economic growth leading to the...
  • Did I Catch a Niner in There? [Paul Ryan “loves” Cain Plan, Reaganomics Arthur Laffer: "Wonderful"]

    10/14/2011 11:55:32 AM PDT · by fight_truth_decay · 7 replies
    MyFox Houston ^ | Friday, 14 Oct 2011 | Staff
    “I think Nine-Nine-Nine is a wonderful plan. I think a lot of the candidates have very good plans for tax reform, but I love the Nine-Nine-Nine Plan. I think it's a great first step.”-- Economist Arthur Laffer, top tax adviser to President Ronald Reagan, on “ Special Report" with Bret Baier.” Arthur Laffer, one of the high priests of Reaganomics, who told Bret Baier Herman Cain’s Nine-Nine-Nine Plan is “wonderful.” House GOP Budget Boss Paul Ryan told the Daily Caller he “loves” Cain’s plan. In Republican circles those are two very big boosters, especially for a guy who is said...
  • Spending Cuts, Not Tax Hikes, Best for Deficit: NABE

    08/22/2011 6:51:56 AM PDT · by MNJohnnie · 12 replies
    CNBC ^ | 08-22-11 | CNBC
    The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts. The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases. As for how to reduce the deficit, nearly 40 percent said the best way would be to contain Medicare and Medicaid costs. Nearly a quarter recommended overhauling the tax system...
  • The Folly of Soaking the Rich

    07/04/2011 12:29:47 PM PDT · by rhema · 19 replies
    National Review ^ | July 3, 2011 | Mario Loyola
    The chart Andrew Stiles referred to Friday (from an earlier post by Veronique de Rugy) shows only the start of how counterproductive it is to increase taxes on the wealthy. As a result of lower tax rates on the top income earners, not only do they pay a much larger share of all taxes, but they pay much more taxes total — and revenue to the government has increased. This is because lowering taxes on the rich creates more rich people and richer rich people. The federal government gets much more revenue if you impose a 40 percent tax on...
  • Editorial: A Laffer Curve For Liberals

    07/01/2011 4:44:23 PM PDT · by Kaslin · 18 replies
    IBD Editorials ^ | June 1, 2011 | Staff
    Stimulus: Remember the left's contempt for the Laffer Curve — which posited that certain tax cuts will pay for themselves by accelerating economic growth? Well, now they're pushing their own version of voodoo economics. Largely overlooked in the coverage of President Obama's latest press conference was his call for another round of deficit-fueled stimulus spending as part of a debt reduction package. If that sounds a bit incongruous, here's how Obama justifies it. "One of the most important things we can do for debt and deficit reduction is to grow the economy," he said, adding that "if there are steps...
  • The Laffer Curve and the limits of the state

    05/28/2011 6:28:50 AM PDT · by all the best · 7 replies
    The Cobden Centre ^ | May 27, 2011 | John Phelan
    “I’m mortified to have to pay 50%!” So said the phenomenally successful singer Adele in an interview with Q magazine. And why shouldn’t she be? Isn’t it unfair that a person can perform labour for which they get less of the reward than someone else who didn’t perform it? The right to work as you wish and dispose of the fruits of your labour as you wish are essential rights that differentiate free men and women from slaves. Agreeing with Adele seems a moral slam dunk. Not if you write for or read the Guardian. They took Adele to task...
  • Higher taxes can't solve the deficit

    03/18/2011 2:33:05 AM PDT · by Scanian · 12 replies
    The American Thinker ^ | March 17, 2011 | Steve McCann
    In the ongoing battle between the fiscal conservatives and the liberal Democrats, there appears little chance of any meaningful movement toward fiscal sanity without the so-called ultimate weapon of a shutdown being employed. The conservative element of the Republicans in the House and Senate claim that only massive spending cuts can save the country from going off a financial cliff into bankruptcy. The Democrats counter that spending really isn't the problem -- the country can afford the spending and more; it is that the rich are not paying enough in taxes. That same argument is used in various state capitals...
  • Sen. John Ensign (Nevada) Demonstrates that the Bush Tax Cuts Raised US Revenue

    12/14/2010 5:04:31 PM PST · by dila813 · 3 replies
    CSPAN ^ | Today | Sen. John Ensign
    Sen. John Ensign Proves that Bush Tax Cuts Increased Federal Revenue and in fact the deficit is caused entirely due to the spending. I love his chart and it is indicative of what it takes to push back against Democratic Talking Points and I think represents the kind of communication that Conservatives have to emulate.
  • Low Tax Rates Will Generate Jobs As Well As Bring In More Revenue

    12/14/2010 5:31:28 PM PST · by Kaslin · 10 replies
    IBD Editorials ^ | December 14, 2010 | VICTOR SPERANDEO
    In the current jobs debate, one simple economic truth is often neglected: Low tax rates produce more government revenue, not less, and allow more private-sector jobs to be created. Why? Low tax rates leave more capital in private hands to be invested in the marketplace. As simple as this sounds, it's nonetheless often ignored by policy-makers. In short, capital in the hands of private entrepreneurs is invested, which is more efficient than giving it to the government to spend. Not that job creation takes place at the same pace everywhere when rates are cut. Large corporations, small businesses (including individual...
  • Hate the Laffer Curve? Try Woodhill's Curve

    09/15/2010 6:32:06 AM PDT · by SeekAndFind · 34 replies
    RealClearMarkets ^ | 09/15/2010 | Louis Woodhill
    Liberals don't like the Laffer Curve. If you have any doubts, Google "‘Laffer Curve' +discredited" and peruse the 13,400 hits you get. Well, if Liberals hate the Laffer Curve (and they do), they are really going to hate the Woodhill Curve. Professor Laffer originally stated his principle as follows: "For any tax, there are always two tax rates (a high one and a low one) that will produce the same revenue." The example he cited was that tax rates of zero and 100% would both bring in the same amount of revenue-namely, zero. The Woodhill Curve extends the concept of...
  • The Hidden Truth About the Bush Tax Increases

    08/17/2010 1:53:40 PM PDT · by Triple · 11 replies
    Real Clear Markets ^ | 08/16/2010 | Bill Frezza
    The debate rages over whether our country can afford to extend the Bush tax cuts for the rich. Progressives argue that the ballooning Federal debt is a legacy of these tax cuts. There is one unreported flaw in this argument. As data from the IRS show, George Bush did not cut income taxes. He increased them. In fact, Bush increased income taxes not only for the rich but for at least half of all tax filers. Only the poor paid less income tax under George Bush than under Bill Clinton. WHAT? Go to the IRS website and add up the...
  • Laffer: 2011 'Tax' Collapse Coming

    06/07/2010 8:54:29 PM PDT · by Rabin · 25 replies · 120+ views
    money ^ | Monday, 07 Jun 2010 09:54 AM | Julie Crawshaw
    Tax hikes expected to hit after the expiration of the Bush tax cuts will cause today's corporate profits to tumble next year — probably right after a stock market collapse, says economist Arthur Laffer, chairman of Laffer Associates and inventor of the Laffer Curve. “My best guess is that the train goes off the tracks and we get our worst nightmare of a severe 'double dip' recession,”.
  • The Revenue Limits of Tax and Spend

    05/17/2010 2:15:28 AM PDT · by The Raven · 3 replies · 385+ views
    The Wall St Journal (Subscription) ^ | may 17, 2010 | DAVID RANSON
    [snip] U.S. fiscal policy has been going in the wrong direction for a very long time. But this year the U.S. government declined to lay out any plan to balance its budget ever again. Based on President Obama's fiscal 2011 budget, the Congressional Budget Office (CBO) estimates a deficit that starts at 10.3% of GDP in 2010. It is projected to narrow as the economy recovers but will still be 5.6% in 2020. As a result the net national debt (debt held by the public) will more than double to 90% by 2020 from 40% in 2008. The current Greek...
  • The Rich Can't Pay for ObamaCare

    03/30/2010 7:35:12 AM PDT · by reaganaut1 · 10 replies · 1,172+ views
    Wall Street Journal ^ | March 30, 2010 | Alan Reynolds
    President Barack Obama's new health-care legislation aims to raise $210 billion over 10 years to pay for the extensive new entitlements. How? By slapping a 3.8% "Medicare tax" on interest and rental income, dividends and capital gains of couples earning more than $250,000, or singles with more than $200,000. The president also hopes to raise $364 billion over 10 years from the same taxpayers by raising the top two tax rates to 36%-39.6% from 33%-35%, plus another $105 billion by raising the tax on dividends and capital gains to 20% from 15%, and another $500 billion by capping and phasing...
  • The Case Against the (House health care) Millionaire Surtax

    12/28/2009 7:49:31 AM PST · by reaganaut1 · 4 replies · 405+ views
    American Enterprise Institute ^ | December 21, 2009 | Alan D. Viard
    On November 7, 2009, the House passed H.R. 3962, the Affordable Health Care for America Act. The bill would expand Medicaid, grant subsidies to moderate-income households buying health insurance on newly established exchanges, and provide health insurance tax credits to some small businesses. These expenditures would be financed, in part, by a new 5.4 percent surtax on households with very high incomes, including married couples with incomes above $1 million. The proposed millionaire surtax is politically attractive because its direct burden would fall on a very small group, roughly 0.3 percent of the population. Moreover, this group is extremely wealthy...
  • Tax Cuts Might Accomplish What Spending Hasn’t

    12/12/2009 2:08:48 PM PST · by TaxPayer2000 · 26 replies · 1,242+ views ^ | December 12, 2009 | N. GREGORY MANKIW
    ~SNIP~Congress passed a sizable fiscal stimulus. Yet things turned out worse than the White House expected. The unemployment rate is now 10 percent — a full percentage point above what the administration economists said would occur without any stimulus. To be sure, there are some positive signs, like reduced credit spreads, gross domestic product growth and diminishing job losses. But the recovery is not yet as robust as the president and his economic team had originally hoped. So what to do now? The administration seems most intent on staying the course, although in a speech Tuesday, the president showed interest...
  • You Can't Soak the Rich[No Matter the Tax Rate, Tax Revenues Remained about 19.5% of the GDP]

    10/13/2009 10:39:47 AM PDT · by Son House · 24 replies · 1,327+ views
    The Wall Street Journal ^ | MAY 20, 2008 | By DAVID RANSON
    Will increasing tax rates on the rich increase revenues, or hold back the economy? Mr. Hauser uncovered the means to answer these questions definitively. On this page in 1993, he stated that "No matter what the tax rates have been, in postwar America tax revenues have remained at about 19.5% of GDP." What a pity that his discovery has not been more widely disseminated. The chart nearby, updating the evidence to 2007, confirms Hauser's Law. The federal tax "yield" (revenues divided by GDP) has remained close to 19.5%, even as the top tax bracket was brought down from 91% to...
  • New York State Tax Revenues Slump 36%, Is New York The Next California?

    10/05/2009 11:14:55 AM PDT · by FromLori · 96 replies · 4,651+ views
    Zero Hedge ^ | 10/5/09
    New York State is quickly becoming the next California, as tax revenues drop 36% from 2008 levels, and a dejected governor expressing his frustration with policy measures that continue to not bear fruit. As a reminder the state most reliant on the financial sector, is struggling with a $2.1 billion budget deficit that is still looming despite tax increases, federal aid and spending cuts. New York State’s income tax revenue has dropped 36 percent from the same period in 2008, Governor David Paterson said, “frustrating” his attempt to close a projected $2.1 billion budget deficit. “We added personal income tax,...
  • We are on The Laffer Curve

    09/16/2009 1:27:09 PM PDT · by Admiral_Zeon · 41 replies · 1,847+ views
    Science Magazine ^ | 16 Sep 2009 | S Carroll
    The Laffer Curve is a simple idea: a government can’t raise taxes forever and expect to increase revenue along the way. Eventually you’re taking so much in taxes that people don’t have any reason to earn income. The argument is simple (and correct): if you have zero tax rate you get zero tax revenue. If you raise taxes just a bit, nobody will be discouraged from working, and you will collect some amount of revenue; therefore, the curve of revenue versus tax rate starts at zero and initially rises. But if the tax rate is 100%, nobody has any reason...
  • Olbermann marvels at “just how stupid” the opponents of high taxes and Obamacare are

    08/09/2009 1:18:04 PM PDT · by HorowitzianConservative · 25 replies · 1,134+ views
    NewsReal Blog ^ | August 9, 2009 | John Perazzo
    On his Countdown program Thursday, Keith Olbermann demonstrated once again that because of his boiling hatred for anyone whose ideology differs from his own, he is entirely incapable of engaging in linear thought or reasoned debate. In this particular episode, Olbermann designated former Reagan economic advisor Arthur Laffer as the day’s “Worst Person in the World,” disparaging Laffer as “the pusher of the discredited notion that tax cuts for the rich stimulated the economy, and the creator of the farcical Laffer Curve.” The Laffer Curve is a concept which contends that at a given point of increased taxation, business activity...
  • Obama Budget, Health Care Surtax Will Shrink Federal Income Tax Base

    08/08/2009 2:12:23 PM PDT · by reaganaut1 · 11 replies · 957+ views
    Tax Foundation ^ | July 29, 2009
    With the expiration of the Bush tax cuts and the implementation of a proposed health care surtax, in 2011 the top federal individual income tax rate will rise to more than 46% and over 50% for those living in many states. This sharp increase in tax rates can be expected to reduce the size of the tax base and may raise substantially less revenue than the casual observer might think—perhaps only 60 cents on the dollar. In Tax Foundation Fiscal Fact No. 182, "The Economic Cost of High Tax Rates," Senior Fellow Robert Carroll explains that for every 1% decrease...
  • You Can't Soak the Rich [Regardless of tax rates, federal tax revenue is always 19.5% of GDP]

    09/22/2008 3:19:03 PM PDT · by grundle · 28 replies · 1,094+ views
    Wall St. Journal ^ | May 20, 2008 | David Ranson
    Kurt Hauser is a San Francisco investment economist who, 15 years ago, published fresh and eye-opening data about the federal tax system. His findings imply that there are draconian constraints on the ability of tax-rate increases to generate fresh revenues. I think his discovery deserves to be called Hauser's Law Like science, economics advances as verifiable patterns are recognized and codified. On this page in 1993, he stated that "No matter what the tax rates have been, in postwar America tax revenues have remained at about 19.5% of GDP." The chart nearby, updating the evidence to 2007, confirms Hauser's Law....
  • You Can't Soak the Rich

    05/20/2008 7:11:25 AM PDT · by ReleaseTheHounds · 99 replies · 262+ views
    The Wall Street Journal ^ | May 20, 2008 | David Ranson
    Kurt Hauser is a San Francisco investment economist who, 15 years ago, published fresh and eye-opening data about the federal tax system. His findings imply that there are draconian constraints on the ability of tax-rate increases to generate fresh revenues. I think his discovery deserves to be called Hauser's Law, because it is as central to the economics of taxation as Boyle's Law is to the physics of gases. Yet economists and policy makers are barely aware of it. Like science, economics advances as verifiable patterns are recognized and codified. But economics is in a far earlier stage of evolution...
  • The Laffer Curve, Part I: Understanding the Theory

    02/03/2008 9:46:51 AM PST · by LowCountryJoe · 41 replies · 184+ views
    YouTube ^ | January 28, 2008 | Dan Mitchell
    A seven and one half minute explanation of what the Laffer curve is. This is one of three parts; the remaining two have not been posted at YouTube yet. Enjoy!
  • Arthur B. Laffer: The Tax Threat to Prosperity

    01/25/2008 1:00:25 AM PST · by Aristotelian · 8 replies · 923+ views
    The Wall Street Journal ^ | January 25, 2008 | Arthur B. Laffer
    Over the past 30 years, the U.S. has seen large changes in income tax rates as well as other tax rates. And, as would be expected, the budgetary implications of these tax changes have once again become a hotly debated partisan issue. But missing from the discussion are the huge differences in how the top 1% of income earners respond to changes in tax rates versus, say, the bottom 75% or 80% of taxpayers -- the so-called middle class and lowest income groups. The "rich" quite simply are not like the rest of us. (snip) The important point here is...
  • Listen To JFK (Why Tax Cuts Help The Economy And Promote Freedom Alert)

    11/22/2007 10:10:46 PM PST · by goldstategop · 10 replies · 366+ views ^ | 11/23/2007 | Joseph Farah
    Forty-five years ago this week, President John F. Kennedy announced a startling economic discovery. He tried to educate the American people about why he was cutting taxes – not that the American people or any other people have ever needed to be persuaded to cut taxes. In a news conference Nov. 20, 1962, he said: "It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now. ... Cutting taxes now is not to incur a budget...
  • Chait Doesn't Just Hate Bush: Loathes Lower Taxes, Too

    10/09/2007 4:22:38 AM PDT · by governsleastgovernsbest · 13 replies · 672+ views
    NewsBusters ^ | Mark Finkelstein
    Jonathan Chait is one of the Founding Fathers of Bush Derangement Syndrome. Way back in '03, the New Republic senior editor authored one of BDS's early, seminal works: "The Case for Bush Hatred," whose very first line was the unequivocal: "I hate President George W. Bush." Ah, but Jonathan Chait isn't a mere one-hatred man. As of this morning, we can conclusively state that in addition to his animus toward our nation's chief executive, Jonathan Chait also hates lower taxes. In his New York Times column "Captives of the Supply Side," Chait directs his ire at lower federal taxes in...
  • We're Number One, Alas

    07/13/2007 7:44:18 AM PDT · by RKV · 14 replies · 462+ views
    Wall Street Journal ^ | 13 July 2007 | Staff
    Some good news on the tax cutting front: Last week lawmakers approved an 8.9 percentage point reduction in the corporate income tax rate. Too bad the tax cutters are Germans, not Americans. There's a trend here. At least 25 developed nations have adopted Reaganite corporate income tax rate cuts since 2001. The U.S. is conspicuously not one of them. Vietnam has recently announced it is cutting its corporate rate to 25% from 28%. Singapore has approved a corporate tax cut to 18% from 20% to compete with low-tax Hong Kong's rate of 17.5%, and Northern Ireland is making a bid...
  • Reaganomics at 25

    08/12/2006 12:46:58 PM PDT · by Tolerance Sucks Rocks · 30 replies · 812+ views
    Wall Street Journal ^ | August 12, 2006 | Wall Street Journal
    Twenty-five years ago this weekend, Ronald Reagan signed the Economic Recovery Tax Act. The bill cut personal income tax rates by 25% across the board, indexed tax brackets for inflation and reduced the corporate income tax rate. The anniversary is worth commemorating as a seminal moment that continues to influence policy for the better in the U.S., and around the globe. The achievement of Reaganomics can only be fully understood by recalling the miserable state of affairs a quarter-century ago. Newsweek summarized the national mood when it wrote in 1981 that Reagan "inherits the most dangerous economic crisis since Franklin...
  • Surprising Jump in Tax Revenues Curbs U.S. Deficit [Democrats sadden.......]

    07/08/2006 10:20:32 AM PDT · by Sub-Driver · 73 replies · 1,720+ views
    Surprising Jump in Tax Revenues Curbs U.S. Deficit By EDMUND L. ANDREWS WASHINGTON, July 8 — An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief. On Tuesday, White House officials are expected to announce that the tax receipts will be about $250 billion above last year's levels and that the deficit will be about $100 billion less than what they projected six months ago. The rising tide in tax payments has...
  • The Myth of Functional Finance: Mises vs. Lerner

    05/31/2006 7:57:36 AM PDT · by Marxbites · 6 replies · 168+ views
    Ludwig von Mises Institute ^ | Tuesday, May 23, 2006 | DW MacKenzie
    Those familiar with the history of twentieth 20th-century economic thought know of the dominance of "Keynesian economics" following the Second World War. While John Maynard Keynes typically receives credit for transforming economics, much postwar Keynesian economics was actually developed by his interpreters and followers. Perhaps the single most important one of these followers was the Romanian born economist Abba P Lerner. Keynes's book The General Theory of Employment, Interest, and Money popularized the notion that market economies were prone to persistent unemployment. Keynes often receives credit for promoting government deficit spending as a means of combating unemployment. However, Abba Lerner...