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The 'Laffer Curve' concept is treated at first glance as some kind of complex model created by experts that Explains A Lot, at second glance as something a bunc
by mapt 2y ago
The 'Laffer Curve' concept is treated at first glance as some kind of complex model created by experts that Explains A Lot, at second glance as something a bunch of drunk political operatives scrawled on a cocktail napkin in 1974 that doesn't necessarily have any relation to reality, and at third glance as a tautology whose dishonest core is the labelling of the x axis.
Academic attempts to identify the optimal maxima of tax receipts, which conservative political operatives will always implicitly assume is "half whatever the current rate is", suggest something on the order of 60%.
- nicoburns 2y ago> In economics, the Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue. https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve I would dispute the premise of the Laffer Curve: that the goal of setting a (high) taxation rate is to maximise government revenue. I think that reducing wealth inequality is a good in and of itself. And especially under a capitalist system that depends on it's citizens having vaguely equal purchasing power to function efficiently. Assuming that our starting point is our current situation where wealth is very unequally distributed, that is. I would agree with the suggestion that things being too equal, and there being no reward for hard work and/or ingenuity also leads to problems. Optimisation that tries to balance that trade-off would interest me greatly.