Back in 2010, I wrote a post entitled “What’s the Ideal Point on the Laffer Curve?“ Except I didn’t answer my own question. I simply pointed out that revenue maximization was not the ideal outcome. I explained that policy makers instead should seek to maximize…
Daily Analysis
Ranking the States for Economic and Personal Freedom
Sometimes I myopically focus on fiscal policy, implying that the key to prosperity is small government. But I’ll freely admit that growth is maximized when you have small government AND free markets. That being said, our goal should be to expand freedom, not merely to…
Does Your Family Have an Extra $5,500 to Pay the Higher Energy Taxes Proposed by the Bureaucrats at the IMF (Who Get Tax-Free Salaries)?
If asked to name my least-favorite international bureaucracy, the easy answer would be the Organization for Economic Cooperation and Development. After all, it was only a few days ago that I outlined different ways that the Paris-based bureaucracy is seeking to expand…
Revenge of the Laffer Curve…Again and Again and Again
If I live to be 100 years old, I suspect I’ll still be futilely trying to educate politicians that there’s not a simplistic linear relationship between tax rates and tax revenue. You can’t double tax rates, for instance, and expect to double tax revenue. Simply…
California’s Golden Bureaucrat Snags $400K of Yearly Compensation – for the Rest of Her Life!
Check out some of the ridiculous details about the woman who has earned the title of California’s Golden Bureaucrat. Alameda County supervisors have really taken to heart the adage that government should run like a business — rewarding County Administrator Susan…
Good News: We’re Heading in the Wrong Direction at a Slower Pace
In recent months, people have asked me why I’m acting all giddy and optimistic. Am I hooked on cocaine? Have I fallen in love? Did I inherit several million dollars? These questions started after I said the fiscal cliff was a smaller loss than I expected. Then people…
Targeting Multinationals, the OECD Launches New Scheme to Boost the Tax Burden on Business
I’ve been very critical of the Organization for Economic Cooperation and Development. Most recently, I criticized the Paris-based bureaucracy for making the rather remarkable assertion that a value-added tax would boost growth and employment. But that’s just the tip…
(Almost) Everything You Ever Wanted to Know about the Fiscal Policy Debate in a Single Chart
I’m a sucker for a good flowchart because they either can help to simplify analysis or they can show how something is very complex. Some of my favorites include: This explanation of double taxation. This depiction of the no-win Greek economic crisis. Portrayals of…
The Laffer Curve Bites Ireland in the Butt
Cigarette butt, to be more specific. All over the world, governments impose draconian taxes on tobacco, and then they wind up surprised that projected revenues don’t materialize. We’ve seen this in Bulgaria and Romania, and we’ve seen this Laffer Curve effect in…
If Obama Wants More Tax Revenue, He Should Lower the Corporate Tax Rate
Regular readers know that I’m a big advocate of the Laffer Curve, which is the common-sense notion that higher tax rates will cause people to change their behavior in ways that reduce taxable income. But that doesn’t mean “all tax cuts pay for themselves.” Yes, that…