Saturday, October 17, 2009
About the Laffer Curve
This doesn't seem much different from the Law of Diminishing Returns.
It's different for every individual; however, we all likely have a point where we decide "it's not worth the effort".
Certainly, government should NOT create or add to this feeling...
It would be worthwhile to view them before forming any final opinions.
It's different for every individual; however, we all likely have a point where we decide "it's not worth the effort".
Certainly, government should NOT create or add to this feeling...
On a DiscoverMagazine blog, Sean posts this explanation and questions:
"The Laffer Curve is a simple idea: a government can’t raise taxes forever and expect to increase revenue along the way. Eventually you’re taking so much in taxes that people don’t have any reason to earn income. The argument is simple (and correct): if you have zero tax rate you get zero tax revenue. If you raise taxes just a bit, nobody will be discouraged from working, and you will collect some amount of revenue; therefore, the curve of revenue versus tax rate starts at zero and initially rises. But if the tax rate is 100%, nobody has any reason to work, and your total revenues will be back at zero. By the wonders of math, there must therefore be a maximum of the curve somewhere in between 0% and 100% tax rate.Update: A comment has provided links to several YouTube videos that explain the Laffer Curve and it's mechanics quite well.
An important question is, where are we on the curve? "
It would be worthwhile to view them before forming any final opinions.
Comments:
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I would like to see these videos reviewed.
The Laffer Curve, Part I: Understanding the Theory
http://www.youtube.com/watch?v=fIqyCpCPrvU&feature=related
The Laffer Curve, Part II: Reviewing the Evidence
http://www.youtube.com/watch?v=YsB_rnzBA08&feature=channel
The Laffer Curve, Part III: Dynamic Scoring
http://www.youtube.com/watch?v=Mw7LtVwDCbs&feature=channel_page
The Laffer Curve, Part I: Understanding the Theory
http://www.youtube.com/watch?v=fIqyCpCPrvU&feature=related
The Laffer Curve, Part II: Reviewing the Evidence
http://www.youtube.com/watch?v=YsB_rnzBA08&feature=channel
The Laffer Curve, Part III: Dynamic Scoring
http://www.youtube.com/watch?v=Mw7LtVwDCbs&feature=channel_page
# posted by 
: Tue Oct 20, 10:00:00 AM EDT
: Tue Oct 20, 10:00:00 AM EDT
Thank you for your comment.
I agree wholeheartedly that this is NOT an all encompassing theory.
As you suggest, I would encourage a review of the YouTube videos that you posted.
I will update my original post to include a reference to your comment.
Thanks again.
Post a Comment
I agree wholeheartedly that this is NOT an all encompassing theory.
As you suggest, I would encourage a review of the YouTube videos that you posted.
I will update my original post to include a reference to your comment.
Thanks again.
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