5 ms·

Seems like you can write this article, but you could easily write the opposite. I'm always puzzled why conservatives are so sure that taxation suppresses growth

Seems like you can write this article, but you could easily write the opposite. I'm always puzzled why conservatives are so sure that taxation suppresses growth. I get that there are models that show that this can happen at some level of taxation, but there are two issues. One, model parameters need to be discovered. Second, we just don't seem to see the effect very much in real life. So you have to write articles like this that are really . . . speculative . . . in observing whether policies are having an effect in one direction or the other.

Spooky23 10y ago
The people who financially back conservatives are mostly in extractive industries (i.e. Koch brothers), they see any government regulation or taxation as a skim. Higher taxes hurt only in comparison to other locales.
- grzm 10y ago
  The people who financially back conservatives are mostly in extractive industries (i.e. Koch brothers), That's interesting. I haven't heard this before. Would you share data to back this up? they see any government regulation or taxation as a skim. It's not clear to me why this statement can't be true of non-extractive industries as well.
  - digitaltrees 10y ago
    Look up the financial backers of Cato institute or heritage foundation and review their published work and you should have a clear picture.
  - Spooky23 10y ago
    You're best bet at understanding is to read "Master of the Senate" by Robert Caro. The book is about LBJ, but goes into detail about how the civil rights legislation caused the "conservative democrats" (aka segregationists) to join up with Western conservatives, who are the extractive people tha I mentioned.
velodrome 10y ago
> I'm always puzzled why conservatives are so sure that taxation suppresses growth. https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve
- digitaltrees 10y ago
  Do you think this is valid analysis? Or are you citing the reason for the belief? I agree, this is the primary argument used to justify lowering taxes.
- r00fus 10y ago
  Hasn't that been disproven? Even George Bush called it "voodoo economics".
  - obstinate 10y ago
    The Laffer Curve is very much real. The question is what the real shape of the curve is. Do we have optimal government revenues at 10% average taxation, or 90%? The answer probably lies between these numbers. There's also the question, after deciding this, of how much revenue the government needs to accomplish each marginal goal, and how much utility that revenue has compared to leaving the revenue in the hands of taxpayers.

Spooky23 10y ago

The people who financially back conservatives are mostly in extractive industries (i.e. Koch brothers), they see any government regulation or taxation as a skim. Higher taxes hurt only in comparison to other locales.

grzm 10y ago
The people who financially back conservatives are mostly in extractive industries (i.e. Koch brothers), That's interesting. I haven't heard this before. Would you share data to back this up? they see any government regulation or taxation as a skim. It's not clear to me why this statement can't be true of non-extractive industries as well.
- digitaltrees 10y ago
  Look up the financial backers of Cato institute or heritage foundation and review their published work and you should have a clear picture.
- Spooky23 10y ago
  You're best bet at understanding is to read "Master of the Senate" by Robert Caro. The book is about LBJ, but goes into detail about how the civil rights legislation caused the "conservative democrats" (aka segregationists) to join up with Western conservatives, who are the extractive people tha I mentioned.

velodrome 10y ago

> I'm always puzzled why conservatives are so sure that taxation suppresses growth. https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve

digitaltrees 10y ago
Do you think this is valid analysis? Or are you citing the reason for the belief? I agree, this is the primary argument used to justify lowering taxes.
r00fus 10y ago
Hasn't that been disproven? Even George Bush called it "voodoo economics".
- obstinate 10y ago
  The Laffer Curve is very much real. The question is what the real shape of the curve is. Do we have optimal government revenues at 10% average taxation, or 90%? The answer probably lies between these numbers. There's also the question, after deciding this, of how much revenue the government needs to accomplish each marginal goal, and how much utility that revenue has compared to leaving the revenue in the hands of taxpayers.