by Dan Mitchell | Aug 11, 2018 | Blogs, Economics, Laffer Curve, Supply Side, Taxation
I’ve been writing about the Laffer Curve for decades, making the simple point that there’s not a linear relationship between tax rates and tax revenue. To help people understand, I ask them to imagine that they owned a restaurant and decided to double prices. Would...
by Dan Mitchell | Jul 31, 2018 | Blogs, Economics, Supply Side, Taxation
In the past few years, I’ve bolstered the case for lower tax rates by citing country-specific research from Italy, Australia, Germany, Sweden, Israel, Portugal, South Africa, the United States, Denmark, Russia, France, and the United Kingdom. Now let’s look to the...
by Dan Mitchell | Jul 26, 2018 | Blogs, Economics, Taxation
I’ve been in China this week, giving lectures about economic policy at Northeastern University in Shenyang. I’ve explained that China has enjoyed reasonably impressive growth in recent decades thanks to pro-market reforms. But I’ve also pointed out that further...
by Dan Mitchell | Jul 11, 2018 | Blogs, Economics, Supply Side, Taxation
Three years ago, I shared two videos explaining taxation and deadweight loss (i.e., why high tax burdens are bad for prosperity). Today, I have one video on another important principle of taxation. To set the stage for this discussion, here are two simple definitions...
by Dan Mitchell | Jun 15, 2018 | Blogs, Economics, Taxation
One of the core principles of economics is that prices are determined by supply and demand. That includes the price of labor – i.e., the wages received by workers. Another core principle is that taxes create distortions by reducing demand and supply. Which is why it’s...
