Raising Taxes Does NOT Raise Revenue: Debunking the Liberal Myth
The politics of taxation are about to get a smack down.
The left argues that we need to tax the most affluent among us at a much higher rate than we currently do because, they have more and therefore should pay more. That argument is fine as long as the word “fair” is left out of the debate. Because making someone pay more of their income by percentage than someone else is simply not fair.
The right argues that we should tax the most affluent among us at a lower rate, suggesting this will encourage wealthy Americans to spend more of their disposable income to spur the economy if indeed they have more disposable income due to lower taxes. The “trickle down” effect is disputed by the left as non-existent, arguing tax breaks for the wealthy do not translate into job growth or a better economy for the middle and lower classes.
Time to put the argument to rest and I believe this explanation of the Laffer Curve does just that. Take the next 6 minutes and get a solid education on the economics of taxation from a UCLA Professor of Political Science and Economics.
This would give ample weight to the idea that corporate and individual income tax should not be higher than 33% and probably best between 25 and 30%. Like former President Bill Clinton said at the Democrat National Convention, it’s arithmetic!
The numbers are hard to refute and even harder for the left since it was someone from their side that came to the end conclusion.
Despite the vast majority of Democratic opinion that rails against the Laffer Curve’s theoretical constructs (at least when it comes to lower-level tax rates), Dr. Tim Groseclose, Professor of Political Science and Economics at UCLA, claims that its tenets are “very uncontroversial among economists.”
President Obama’s plan will increase taxes on those making over $250,000 from 33% to 36%. If he gets re-elected, it will be interesting to see how the Laffer Curve comes into play.
The Laffer Curve could turn Obama and the Democrats tax plan into a real “Laffer”.
- Clinton “Miracle” Was Really Spending Slowdown (Gingrich Revolution) and Tax Cuts of 1997 (confoundedinterest.wordpress.com)
- Why ‘Tax The Rich’ Doesn’t Solve Anything: It’s The Math, Stupid (zerohedge.com)