Who has heard of the Laffer Curve? The Laffer Curve proves that the higher taxes go, the less incentive people & businesses have to make money, and the more incentive they have to move their funds out of country and thus avoid those taxes. The result is no revenue. If you raise the taxes too much the result is that NOBODY pays those taxes. That is the Laffer Curve, the relationship between tax rates and people avoiding paying taxes. And this is why the Deomcrats are wrongheaded when they say they need to raise taxes to get more revenue. It does not work that way. QUOTE: It is very simple. If you tax at either 0% or 100% you will get nothing because either there is no tax OR the effort of making money is not worth it. You can increase taxes to some optimum point where you will continue to get more revenue up to the point where increased taxation becomes counterproductive because it causes people to reduce their effort. We observed this phenomenon actually occurring in the United States when we had ultra-high marginal tax rates. Various types of earners curtailed their effort once they hit the magic level at which they would begin to pay the highest rates. They preferred to put off additional activity until the next year. Famously, the detective novels about Nero Wolfe mentioned his tendency to take a few months off at the end of the year because of the top rates of taxation.