4 ms·
So you're saying that if the tax were lower, people would fire their accountants and pay more taxes out of the goodness of their hearts? A sense of fairness?
by jbooth 11y ago
So you're saying that if the tax were lower, people would fire their accountants and pay more taxes out of the goodness of their hearts? A sense of fairness?
- cbeach 11y agoIf tax is lower, tax loopholes are less lucrative. Basically you kill the market for accountants.
- viscanti 11y agoThey would if the cost of hiring someone to help save money on taxes cost more than it saved. It's not about a sense of fairness. If paying someone to save on taxes is a bad investment, people stop doing that.
- jbooth 11y agoSo, if we're talking revenue of billions.. cut taxes to 0.0001% and that's the peak of the Laffer Curve where we maximize revenue? That's the argument?
- dennisgorelik 11y agoNo. Typical assumption is that the peak of Laffer Curve is somewhere between 30% and 70%.
- skylan_q 11y agoCapital moves more easily than labor. Not only are there loopholes to not pay taxes, they can also shift operations so that profits are realized in a different jurisdiction and the money goes there instead. Despite large cuts in corporate income tax and a reduction in consumption tax coupled with temporary increased spending, Canada's debt to GDP ratio is where it was before the '08 crash. The debt increased about 50% during this time, but so did the GDP. Companies stayed in Canada/came to Canada and with growth came more tax revenue. The fear was that the books would never get near balanced again with drastically reduced tax rates, but 2014/2015 was roughly balanced. (Arguably about -$3 billion for the whole year)