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> Lower taxes and the growth will somehow give these people more money? Really? Lowering tax rates can actually increase a country's total tax receipts. Having
by defertoreptar 8y ago
> Lower taxes and the growth will somehow give these people more money? Really?
Lowering tax rates can actually increase a country's total tax receipts. Having more GDP not only means more stuff per person, but also more stuff to tax.
That said, the goal of a country is not even to maximize its tax receipts in the first place. Taxes are one way that a country achieves its goals. A country's goals are going to be a mixed bag, anything from redistribution wealth to the poor as you've said, to reducing tax burdens on its citizens.
- dmode 8y agoDo we really believe that lowering taxes increases tax receipts ? I don’t think any tax experts believe it anymore. There have been number of examples, like Bush Tax cuts and Kansas tax cuts that didn’t increase tax revenue
- defertoreptar 8y agoIn the general sense, which is the sense I meant it, it's obvious. When you tax 100% and 0%, then your tax revenue goes to zero. When you tax 99% and 1%, they're a bit more than zero, but not by much. At some equilibrium, you maximize tax revenue. If the current tax is above that equilibrium, then logically you will increase tax revenue by lowering the tax rate. AKA the Laffer Curve.