Monday, March 08, 2010

Real World Evidence for the Laffer Curve from the Government of Washington, DC | Cato @ Liberty

From the Cato Institute:
Real World Evidence for the Laffer Curve from the Government of Washington, DC | Cato @ Liberty:
"...the Laffer Curve simply reveals that higher tax rates will lead to less taxable income (or that lower tax rates will lead to more taxable income) and that it is an empirical matter to figure out the degree to which the change in tax revenue resulting from the shift in the tax rate is offset by the change in tax revenue caused by the shift in the other direction for taxable income. This should be an uncontroversial proposition, and these three videos explain Laffer Curve theory, evidence, and revenue-estimating issues. Richard Rahn also gives a good explanation in a recent Washington Times column."

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