4 ms·

I’m surprised at how much this got downvoted. The laffer curve is pretty intuitive. I’m not sure why there is all the hate

by Day1 5y ago

tablespoon 5y ago
> I’m surprised at how much this got downvoted. The laffer curve is pretty intuitive. I’m not sure why there is all the hate "Intuitive" does not necessarily imply "true." Some of the most pernicious false ideas are ones that have an intuitive appeal (especially in an oversimple example scenario). The Laffer curve likely falls into something like that category. If it has any truth to it, it's in conditions that don't actually exist (like an effective 90% tax rate).
- Day1 5y ago
  There is nothing false about the laffer curve. What is contentious is what the optimal rate is. There is no evidence that I’m aware of that says the optimal is 1% or 99%.
jacobolus 5y ago
The Laffer Curve was a made up justification for a policy (tax cuts for wealthy people and corporations) a GOP administration wanted to implement as a favor to their political patrons. Laffer came up with it on the spot and sketched it on a napkin. It (and “supply-side economics” in general) is not a serious economic theory.
- dragonwriter 5y ago
  The Laffer Curve is pretty obviously trivially a real thing, the contentious part is the parameters defining the curves and/or points in multidimensional tax policy space where the Laffer Curve hits a maximum of tax collection and where variation leads to decreases (or no change if there is a ridge maximum and the change exactly follows it.) Well, also the usual one-dimensional presentation of the tax-policy space that goes with the curve, but that's not so much contentious as obviously wrong. The people who think it is important tend to have a religious faith that the status quo is in a space where decrease of taxes in any aspect of tax policy moves is back toward the maximum, which, even if you accept the existence of the Laffer Curve, is a claim which needs a lot of justification which is never offered.
  - Day1 5y ago
    I find it important because the impact is pretty obvious to me. Though if I was radically anti-capitalist I might agree with you. The optimal rate could be as low as 1% or as high as 99% for all we know. I’m inclined to believe it’s much lower though because of the incentive it would provide to entry level small business owners and entrepreneurs that are even marginally familiar with how accounting works.

I’m surprised at how much this got downvoted. The laffer curve is pretty intuitive. I’m not sure why there is all the hate

by Day1 5y ago

I’m surprised at how much this got downvoted. The laffer curve is pretty intuitive. I’m not sure why there is all the hate

tablespoon 5y ago

> I’m surprised at how much this got downvoted. The laffer curve is pretty intuitive. I’m not sure why there is all the hate "Intuitive" does not necessarily imply "true." Some of the most pernicious false ideas are ones that have an intuitive appeal (especially in an oversimple example scenario). The Laffer curve likely falls into something like that category. If it has any truth to it, it's in conditions that don't actually exist (like an effective 90% tax rate).

Day1 5y ago
There is nothing false about the laffer curve. What is contentious is what the optimal rate is. There is no evidence that I’m aware of that says the optimal is 1% or 99%.

jacobolus 5y ago

The Laffer Curve was a made up justification for a policy (tax cuts for wealthy people and corporations) a GOP administration wanted to implement as a favor to their political patrons. Laffer came up with it on the spot and sketched it on a napkin. It (and “supply-side economics” in general) is not a serious economic theory.

dragonwriter 5y ago
The Laffer Curve is pretty obviously trivially a real thing, the contentious part is the parameters defining the curves and/or points in multidimensional tax policy space where the Laffer Curve hits a maximum of tax collection and where variation leads to decreases (or no change if there is a ridge maximum and the change exactly follows it.) Well, also the usual one-dimensional presentation of the tax-policy space that goes with the curve, but that's not so much contentious as obviously wrong. The people who think it is important tend to have a religious faith that the status quo is in a space where decrease of taxes in any aspect of tax policy moves is back toward the maximum, which, even if you accept the existence of the Laffer Curve, is a claim which needs a lot of justification which is never offered.
- Day1 5y ago
  I find it important because the impact is pretty obvious to me. Though if I was radically anti-capitalist I might agree with you. The optimal rate could be as low as 1% or as high as 99% for all we know. I’m inclined to believe it’s much lower though because of the incentive it would provide to entry level small business owners and entrepreneurs that are even marginally familiar with how accounting works.