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 | Feb 5, 2022 | Big Government, Blogs, Government Spending, Taxation
A key principle of economics is convergence, which is the notion that poorer nations generally grow faster than richer nations. For instance, battle-damaged European nations grew faster than the United States in the first few decades after World War II....
by Dan Mitchell | Jan 18, 2022 | Blogs, Taxation
I wrote last year about an encouraging trend of lower tax rates at the state level. As you can see from this map, one of the states moving in the right direction is Iowa. But Governor Kim Reynolds isn’t satisfied with just lowering tax rates, which is a...
by Dan Mitchell | Jan 13, 2022 | Big Government, Blogs, Government Spending, Taxation
As part of a recent discussion with Gene Tunny in Australia, I explained why I support “Starve the Beast,” which means keeping taxes as low as possible to help achieve the goal of spending restraint. The premise of Starve the Beast is very simple. Politicians like to...
by Dan Mitchell | Jan 12, 2022 | Blogs, Taxation
I wrote back in 2012 that California voters opted for “slow-motion economic suicide” by voting to raise the state’s top income tax rate to 13.3 percent. Sure enough, having the nation’s highest state income tax rate has been bad news. More and...
