The Democrats' ignorance on taxes & revenue

[CatholicCrusadr]

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.

 

[Chris]

It is the Republican who are ignorant.

Reagan and the two Bushes created 93% of the National Debt by lowering taxes for the rich. Reagan's own budget director, David Stockman, called the Reagan tax cut a "Trojan horse" to lower taxes for the rich. And as your own post says, if you lower taxes too much, then no one pays taxes.

That's where we are today. We have lowered taxes to the point where we have huge deficits. This is the Republicans plan. To defund the government so much that they can no longer regulate polluting extraction companies like the Koch brothers or the theives on Wall Street. It is called disaster capitalism.

All we need to do is repeal the Bush tax cuts and raise the top rate by 3% and cut the ridiculously bloated defense budget.

 

[CatholicCrusadr]

..........Reagan and the two Bushes created 93% of the National Debt by lowering taxes for the rich.......

That is a flat out lie

 

[mascale]

CatholicCrusadr likes to magnify personal ignorance of the Truth. Anyone can notice the famous crucifix art, "Jesus Comments Unfavorably On The Law of Moses!" and see the famous history of their clergy(?)!

State and Local government has dropped nearly 90,000 jobs in just two months. They are bound by the GOP, balanced-budget, kinds of policy, GAO, April 6, 2011:

"Since most state and local governments are required to balance their operating budgets, the declining fiscal conditions shown in our simulations suggest that these governments would need to make substantial policy changes to avoid growing fiscal imbalances. That is, absent any intervention or policy changes, state and local governments would face an increasing gap between receipts and expenditures in the coming years. One of the factors contributing to the near-term fiscal picture is the decline in the sector's tax receipts. Total tax receipts declined nearly 5 percent from 2008 to 2009. Personal income and sales taxes accounted for most of the 2009 decline, dropping about 16 percent and 5 percent respectively. In 2010, neither receipt category grew more than 2 percent. In addition, 2010 total tax receipts still remained below their 2008 level as well as their 2008 share of Gross Domestic Product (GDP). This April 2011 update to our model incorporates these near-term revenue changes as well as recent expenditure data but focuses on the long-term outlook for state and local governments as a sector. The decline in the sector's operating balance over time is primarily driven by rising health-related costs. Because most state and local governments are required to balance their operating budgets, the declining fiscal conditions shown in our simulations suggest the fiscal pressures the sector faces and foreshadow the extent to which these governments will need to make substantial policy changes to avoid growing fiscal imbalances."

Anyone sees what CatholicCrusadr is really for, and myopic as that likely is.

"Crow, James Crow: Shaken, Not Stirred!"
(Taking A Bad Idea And Making It Policy! Hmmmm!)