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I frankly don't believe this. (edit for clarity: the proposition that our current rates are highly likely to be towards the top end of what's feasible, not the
by danaris 1y ago
I frankly don't believe this. (edit for clarity: the proposition that our current rates are highly likely to be towards the top end of what's feasible, not the existence of such a curve)
It's been cited as unshakable truth many times, including just before places like Washington State significantly raised their top tax brackets—and saw approximately zero rich people leave.
There's a lot of widely-believed economic theory underlying our current practice that's based on extremely shaky ground.
As for how SS taxes are handled, I'm 100% in agreement with you.
- hunterpayne 1y agoRich people don't have to leave a state to use tax avoidance strategies. I live in Washington state. The recent state tax increases have reduced total state tax revenue. That's the point of the Laffer curve, tax rate increases result in less tax revenue. Now exactly the shape of the curve, that's hard to say. But you are obviously past the maximum when a rate increase reduces tax revenue. PS The last several CA (I used to live there) tax increases resulted in decreased tax revenue too.