2 ms·
Do 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 Bus
by dmode 8y ago
Do 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.