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.

Advertisements

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s