There are a lot of people calling for raising taxes. Tom Coburn (a Republican, it should be noted) is in favor of increasing tax revenue by raising nominal rates on the wealthy. Daniel Berger thinks it’s unfair that the rich (himself excepted, of course) don’t pay their fair share. These two stories, then, reveal . . . → Read More: Tax Stupidity
This is what annoys me about the Laffer curve: it’s perfectly mathematically and logically sound, but once that’s granted, everyone assumes the precise optimum is wherever agrees with their ideology. The extreme value theorem says nothing about WHERE the extreme value occurs. Republicans seem to assume it must occur somewhere around 0.0000001% . . . → Read More: The Laffer Curve
There’s a lot to comment on here:
I think most people like the idea of a simpler tax code. No argument there. But I’ve never met a person who would volunteer to pay higher taxes in exchange for simplicity.
I don’t know if most would actually pay higher taxes. Sure, direct taxes might increase . . . → Read More: Scott Adams on the Flat Tax
The economic crisis of 2008/2009 had confronted the mainstream economic theory with an unpalatable task of revisiting the notions and perils of the ideas which dominated the course of economic theory in the last few decades. In 2003, delivering a speech to the American Economic Association, Robert Lucas famously noted that the central problem . . . → Read More: What went wrong with supply-side economics?
In 2001 and 2003, former U.S president George W. Bush signed Economic Growth and Tax Relief Act (EGTRAA) and Jobs and Growth Tax Relief Reconciliation Act (JGTRAA). EGTRAA reduced personal income tax rates, increased child tax credit, decreased estate tax and introduced a various range of tax-favored retirement savings plans. In 2003 when EGTRAA . . . → Read More: Bush Tax Cuts and Economic Growth
The “Laffer Curve” first came to public prominence back in the heyday of Reaganomics and “supply side” ideas. The concept is simple and, once you think about it, obvio
us (I say “once you think about it,” because even though it’s been around since the 14th century, it took Arthur Laffer to get people . . . → Read More: A Modest Proposal for a Move to the Left