Trifecta: Tax Revenue Stays the Same Whether or Not You Raise Taxes

As  a percentage of GDP this is largely true (with some moderate exceptions when tax rates hit a low “sweet spot” on the Laffer Curve).

They leave a few details out but  this is incredibly educational.

When the rate is raised too high, not only will there be more loopholes lobbied for, but there will also be massive non-compliance. Non-compliance can come in several forms, such as just not moving their money, storing it in gold or other assets, investing it in China, or the wealth producers simply expatriate.

Bill Whittle’s analogy about government taking a smaller piece of a larger pie is spot on.

About Chuck Norton

I write about politics, education, economics, morality and philosophy.
This entry was posted in Budget, Econ, True Talking Points and tagged , , . Bookmark the permalink.

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