by Dan Mitchell | Apr 19, 2013 | Blogs, Economics, Laffer Curve
Art Laffer has a guaranteed spot in the liberty hall of fame because he popularized the common-sense notion that you can’t make any assumptions about tax rates and tax revenue without also figuring out what happens to taxable income. Lot’s of people on the left try to...
by Dan Mitchell | Apr 2, 2013 | Big Government, Blogs, Economics, Government Spending, Laffer Curve, Taxation
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...
by Dan Mitchell | Mar 31, 2013 | Blogs, Economics, Keynesian, Laffer Curve
Our lords and masters in Washington have taken a small step in the direction of recognizing the Laffer Curve. Here are some details from a Politico report. Here’s one Republican victory that went virtually unnoticed in the slew of budget votes last week: The Senate...
by Dan Mitchell | Mar 28, 2013 | Blogs, Economics, Laffer Curve, Taxation
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...
by Dan Mitchell | Mar 19, 2013 | Blogs, Economics, Laffer Curve, Taxation
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...
