by Dan Mitchell | Feb 12, 2022 | Blogs, Economics, Laffer Curve, Taxation
The Laffer Curve is a method for illustrating the relationship between tax rates, taxable income, and tax revenue. But it’s important to realize that there are actually lots of varieties. The Laffer Curve for capital gains taxes, for instance, will...
by Dan Mitchell | Oct 13, 2021 | Blogs, Economics, Supply Side, Taxation
Reducing the corporate tax rate from 35 percent to 21 percent was the crown jewel of Trump’s 2017 Tax Cut and Jobs Act (TCJA). It was good for workers since a lower rate means more investment, which translates to increased productivity...
by Dan Mitchell | Jul 2, 2021 | Economics, Supply Side, Taxation
Almost everybody (even, apparently, Paul Krugman) agrees that you don’t want to be on the downward-sloping part of the Laffer Curve. That’s where higher tax rates do so much economic damage that government collects even less revenue. But I would argue...
by Dan Mitchell | Dec 19, 2020 | Blogs, Tax Competition, Taxation
In a new documentary film, Race to the Bottom, I had an opportunity to pontificate briefly about corporate tax and the Laffer Curve. At the risk of understatement, I represented a minority viewpoint in the documentary. Most of the people interviewed had a negative...
by Dan Mitchell | Aug 13, 2020 | Blogs, Economics, Laffer Curve, Taxation
Last week, I gave a presentation on the Laffer Curve to a seminar organized by the New Economic School in the nation of Georgia. A major goal was to help students understand that you can’t figure out how changes in tax rates affect tax revenues without also figuring...
