USAs high tax and laffer curve

Only investment in small start-up, R&D & innovation helps.

I sort of like the way Apple killed Nokia, Chrysler is now kicking ass, Facebook, Intel, IBM, Cisco, big Pharma,

maybe a 20 % investment subsidy to big corporations, and a 50 % subsidy to new small businesses makes most sense.

I don't see how taxing dividends on Apple now that it is an established blossoming money tree is going to hurt jobs any more than our exploding debt problem will. It is time to pick some fruit from that money tree. Same for Pepsi, Yum Brands, McDonalds, Exxon, Google, GE or any other top company. Even when taxes on dividends were double we had so much money chaseing Dot Com start-ups that it caused the "Dot Com Bubble." Innovators like Elon Musk is who we need to help. He has already created 7 job creating companies. He is like a modern day Tesla or Edison. Give him any subsidy we can.

How has Warren Buffet investing in Coke, Sees Candy, Helzberg Diamonds, or Geico Insurance helped create jobs or pushed our country foreword more than him not paying any taxes over the past 8 years held us back??????? When collecting money from a well established money machine like Geico is so easy that a caveman can do it, it is time to do away with investment subsidies.
 
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Supply is also a function of cost. If it costs less, then there will be more supply, all else considered. Ed is right about that.

Ed is not right that all taxes are passed along towards consumers. Some are, some are not. It depends on price elasticity. If prices are less elastic, more will be passed on to consumers. If prices are more elastic, the cost is born more so by shareholders. However, taxes will decrease supply since it increases costs. Eventually, the return on capital will recalibrate to its opportunity cost, and if the relative opportunity cost increases, capital will leave and supply will as well. If all taxes were passed on to the consumer, then corporations would never fight a tax increase, since it could merely be passed on to consumers. This, obviously, is not the case.

The Laffer curve is, for the most part, bullshit as it applies to income taxes in the US, except maybe at very high levels. But the empirical evidence is that cutting corporate taxes does increase total tax revenues since it increases economic activity. We should be cutting corporate income taxes in America and eliminating tax deductions, including many of the nonsense offshore tax-sheltering gimmicks companies use to shelter income.
No, cost is not a determination of supply. Supply of manufactured product will not increase unless there is enough demand to buy the product at the PRICE that the product is being sold at. If costs go down, the
sellers may well be willing to sell for less, moving the price downward. Again supply and demand. Again, in a competitive market. However, if not competitive (ie, monopolistic) then all bets are off. Typically proffits will increase. Take for example, the increases in gas prices lately. Supply was up, demand was down, but prices increased. Why? Monopolistic industry which allows the seller to set prices.

Your statement that empirical evidence shows that lowering corporate taxes increases tax revenue would be good news for the Reagan economists, who found just the opposite. What is your bempirical evidence? I have been unable to find any. I keep asking, no one will provide the date of when this happened.

Another case you may want to look at is when w decreased taxes. Deficit again increased due to shrinking tax revenues. Where is the evidence???




I'm not sure what real world examples you are thinking about. One that comes to mind is the one in which yaught makers were taxed to increase the tax income for government and it would come only from the Fat Cats who buy yaughts.

Problem was that the tax only applied to the American yaught makers who were soon all out of business because the Fat Cats starting buying their yaughts from Canadian suppliers instead so the tax revenues, the income taxes and the property taxes all evaporated. The laborers all went on unemployment and the local governments not only did not receive enhanced tax revenues, the revenues decreased and the care expenses for the unemployed increased.

That is the real world result of increased taxes.

Businesses don't pay tax, they only collect it.
Look, the yacht tax was a bad idea. Did not work for a lot of reasons. And was repealed. But it was never meant to solve the economic doldrums of the day. Just a point tax.

SO:

Currently the repubs are pushing the idea of lower taxes, and lower gov spending. I believe you think it is a great idea, as do a number of conserves on this site.

What I am asking you or anyone who is so disposed to believe the repub ideas are good, is simple: When did such a process, of in general reducing income taxes, did it work to make the economy better? During or shortly after ANY downturn in the economy. Or any perceived downturn. But not point taxes, actual federal tax rate decreases that affect the majority of the populace or a major segment of it.

Dems want to see tax increases in the form of curtailing the Bush tax cut , specifically for the well off. You all seem to see this as a REALLY bad idea. So show me where the repub ideas have ever worked.

Seems really simple.

For instance, I can document that in a bad economy, Clinton raised overall income taxes and the resultant economy was extremely good. I have shown you one of mine, lets see one of yours.

If you can't find such a case, then just admit it and maybe you can try looking for a case to support the other major idea of the repubs, namely decreasing gov spending. Again, if you can not, just admit you can not.
 
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So show me where the repub ideas have ever worked.

Seems really simple.

America is a Republican idea. We are the richest country in human history and we have the least government interference in the economy.

Our liberals spied for Stalin but it turned out liberal government did not work there!

Bush cut taxes and we had the greatest revenue increases in American History!!

THe luxury tax on yachts killed the industry. Libturds thought it was a foolproof tax.

It is obvious that when you tax venture capital there will be fewer ventures like Apple Google Intel

Ireland cut taxes and most of the major corporations moved there.

Red China just cut government and instantly switched from en masse starvation to 30 years of 10% growth.
 
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Only investment in small start-up, R&D & innovation helps.

I sort of like the way Apple killed Nokia, Chrysler is now kicking ass, Facebook, Intel, IBM, Cisco, big Pharma,

maybe a 20 % investment subsidy to big corporations, and a 50 % subsidy to new small businesses makes most sense.

I don't see how taxing dividends on Apple now that it is an established blossoming money tree is going to hurt jobs any more than our exploding debt problem will. It is time to pick some fruit from that money tree. Same for Pepsi, Yum Brands, McDonalds, Exxon, Google, GE or any other top company. Even when taxes on dividends were double we had so much money chaseing Dot Com start-ups that it caused the "Dot Com Bubble." Innovators like Elon Musk is who we need to help. He has already created 7 job creating companies. He is like a modern day Tesla or Edison. Give him any subsidy we can.

How has Warren Buffet investing in Coke, Sees Candy, Helzberg Diamonds, or Geico Insurance helped create jobs or pushed our country foreword more than him not paying any taxes over the past 8 years held us back??????? When collecting money from a well established money machine like Geico is so easy that a caveman can do it, it is time to do away with investment subsidies.

Yup - The rich need to earn their money just like the poor. Getting paid every time you pull the lever on the slot machine is not taking a risk & does not deserve a subsidy. Make them risk their money on Angel Investing & Venture Capital if they want a tax subsidy. Hell even government can run an established company like Coca Cola.
 
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I sort of like the way Apple killed Nokia, Chrysler is now kicking ass, Facebook, Intel, IBM, Cisco, big Pharma,

maybe a 20 % investment subsidy to big corporations, and a 50 % subsidy to new small businesses makes most sense.

I don't see how taxing dividends on Apple now that it is an established blossoming money tree is going to hurt jobs any more than our exploding debt problem will. It is time to pick some fruit from that money tree. Same for Pepsi, Yum Brands, McDonalds, Exxon, Google, GE or any other top company. Even when taxes on dividends were double we had so much money chaseing Dot Com start-ups that it caused the "Dot Com Bubble." Innovators like Elon Musk is who we need to help. He has already created 7 job creating companies. He is like a modern day Tesla or Edison. Give him any subsidy we can.

How has Warren Buffet investing in Coke, Sees Candy, Helzberg Diamonds, or Geico Insurance helped create jobs or pushed our country foreword more than him not paying any taxes over the past 8 years held us back??????? When collecting money from a well established money machine like Geico is so easy that a caveman can do it, it is time to do away with investment subsidies.

Yup - The rich need to earn their money just like the poor. Getting paid every time you pull the lever on the slot machine is not taking a risk & does not deserve a subsidy. Make them risk their money on Angel Investing & Venture Capital if they want a tax subsidy. Hell even government can run an established company like Coca Cola.

If a socialist derp like Senator John Kerry can collect hundreds of millions in risk free money from Heinz Foods as steady as an employee gets a paycheck, does he really deserve to skate on taxes? - HELL NO!!! It's no different than paying a bum welfare.
 
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So show me where the repub ideas have ever worked.

Seems really simple.

America is a Republican idea. We are the richest country in human history and we have the least government interference in the economy.

Our liberals spied for Stalin but it turned out liberal government did not work there!

Bush cut taxes and we had the greatest revenue increases in American History!!

THe luxury tax on yachts killed the industry. Libturds thought it was a foolproof tax.

It is obvious that when you tax venture capital there will be fewer ventures like Apple Google Intel

Ireland cut taxes and most of the major corporations moved there.

Red China just cut government and instantly switched from en masse starvation to 30 years of 10% growth.

America is no longer the richest country in human history. China has surpassed us on nearly every measure other than US Dollars flowing through their economy, but that is only because they use the Yuan, Renminbi, Gold & US Dollar. China produces & consumes more than any country in history.

The Bush/Obama tax cuts on large well established business & the rich did not give us the greatest tax revenue increases as a percent of GDP in American History. They did help give us the greatest debt increase in history.

No taxes on Friend, Family & Fool (FFF) investments, Angel investments & Venture Capital are good. Low taxes on Wall Street's Large proven companies are bad. Even with double dividend taxes we had so much venture capital equity chasing start-ups that is caused the "Dot Com" bubble. Letting the rich fleece us on carried interest should be a crime.

"According to Dow Jones VentureSource, which tracks venture-backed companies, Chinese firms received 332 venture capital equity financing deals in 2011, surpassing the U.K.’s 274. The U.S. retained its lead with 3,209 deals. Each deal represents a single case of equity financing by a professional venture capital firm, corporation, other private equity firm or individual. Deals are an indicator of the emergence of start-up and growth companies in an economy. Venture capital firms are not only placing more bets on China, but bigger bets, as well."
 
So show me where the repub ideas have ever worked.

Seems really simple.

America is a Republican idea. We are the richest country in human history and we have the least government interference in the economy.

Our liberals spied for Stalin but it turned out liberal government did not work there!

Bush cut taxes and we had the greatest revenue increases in American History!!

THe luxury tax on yachts killed the industry. Libturds thought it was a foolproof tax.

It is obvious that when you tax venture capital there will be fewer ventures like Apple Google Intel

Ireland cut taxes and most of the major corporations moved there.

Red China just cut government and instantly switched from en masse starvation to 30 years of 10% growth.

America is no longer the richest country in human history. China has surpassed us on nearly every measure other than US Dollars flowing through their economy, but that is only because they use the Yuan, Renminbi, Gold & US Dollar. China produces & consumes more than any country in history.

The Bush/Obama tax cuts on large well established business & the rich did not give us the greatest tax revenue increases as a percent of GDP in American History. They did help give us the greatest debt increase in history.

No taxes on Friend, Family & Fool (FFF) investments, Angel investments & Venture Capital are good. Low taxes on Wall Street's Large proven companies are bad. Even with double dividend taxes we had so much venture capital equity chasing start-ups that is caused the "Dot Com" bubble. Letting the rich fleece us on carried interest should be a crime.

"According to Dow Jones VentureSource, which tracks venture-backed companies, Chinese firms received 332 venture capital equity financing deals in 2011, surpassing the U.K.’s 274. The U.S. retained its lead with 3,209 deals. Each deal represents a single case of equity financing by a professional venture capital firm, corporation, other private equity firm or individual. Deals are an indicator of the emergence of start-up and growth companies in an economy. Venture capital firms are not only placing more bets on China, but bigger bets, as well."

America is, and remains, the richest country in human history. China has not passed us. It's not even close.
 
No, cost is not a determination of supply. Supply of manufactured product will not increase unless there is enough demand to buy the product at the PRICE that the product is being sold at. If costs go down, the
sellers may well be willing to sell for less, moving the price downward. Again supply and demand. Again, in a competitive market. However, if not competitive (ie, monopolistic) then all bets are off. Typically proffits will increase. Take for example, the increases in gas prices lately. Supply was up, demand was down, but prices increased. Why? Monopolistic industry which allows the seller to set prices.

Your statement that empirical evidence shows that lowering corporate taxes increases tax revenue would be good news for the Reagan economists, who found just the opposite. What is your bempirical evidence? I have been unable to find any. I keep asking, no one will provide the date of when this happened.

Another case you may want to look at is when w decreased taxes. Deficit again increased due to shrinking tax revenues. Where is the evidence???




I'm not sure what real world examples you are thinking about. One that comes to mind is the one in which yaught makers were taxed to increase the tax income for government and it would come only from the Fat Cats who buy yaughts.

Problem was that the tax only applied to the American yaught makers who were soon all out of business because the Fat Cats starting buying their yaughts from Canadian suppliers instead so the tax revenues, the income taxes and the property taxes all evaporated. The laborers all went on unemployment and the local governments not only did not receive enhanced tax revenues, the revenues decreased and the care expenses for the unemployed increased.

That is the real world result of increased taxes.

Businesses don't pay tax, they only collect it.
Look, the yacht tax was a bad idea. Did not work for a lot of reasons. And was repealed. But it was never meant to solve the economic doldrums of the day. Just a point tax.

SO:

Currently the repubs are pushing the idea of lower taxes, and lower gov spending. I believe you think it is a great idea, as do a number of conserves on this site.

What I am asking you or anyone who is so disposed to believe the repub ideas are good, is simple: When did such a process, of in general reducing income taxes, did it work to make the economy better? During or shortly after ANY downturn in the economy. Or any perceived downturn. But not point taxes, actual federal tax rate decreases that affect the majority of the populace or a major segment of it.

Dems want to see tax increases in the form of curtailing the Bush tax cut , specifically for the well off. You all seem to see this as a REALLY bad idea. So show me where the repub ideas have ever worked.

Seems really simple.

For instance, I can document that in a bad economy, Clinton raised overall income taxes and the resultant economy was extremely good. I have shown you one of mine, lets see one of yours.

If you can't find such a case, then just admit it and maybe you can try looking for a case to support the other major idea of the repubs, namely decreasing gov spending. Again, if you can not, just admit you can not.




The examples of our Congress cutting taxes are not abundant. Under Kennedy, they did as Kennedy famously said that a rising tide lifts all boats.

Under Reagan, taxes were also cut.

In both cases, both men did what they did to drive the economy and in both cases, the economy improved dramatically.

More recently in Wisconsin, there were some reductions in spending and the following circumstances reveal increased revenue in tax, decreased rate of taxation and increased employment.

There is nobody in the country who doesn't work in Washington DC that does not understand that when the money runs out, you stop spending it.

I'm not sure what you are even talking about. The money has run out. We are condemning our children and their children to pay for our excesses.

How can you think that this is fair or wise?
 
So show me where the repub ideas have ever worked.

Seems really simple.

America is a Republican idea. We are the richest country in human history and we have the least government interference in the economy.

Our liberals spied for Stalin but it turned out liberal government did not work there!

Bush cut taxes and we had the greatest revenue increases in American History!!

THe luxury tax on yachts killed the industry. Libturds thought it was a foolproof tax.

It is obvious that when you tax venture capital there will be fewer ventures like Apple Google Intel

Ireland cut taxes and most of the major corporations moved there.

Red China just cut government and instantly switched from en masse starvation to 30 years of 10% growth.

America is no longer the richest country in human history. China has surpassed us on nearly every measure other than US Dollars flowing through their economy, but that is only because they use the Yuan, Renminbi, Gold & US Dollar. China produces & consumes more than any country in history.

The Bush/Obama tax cuts on large well established business & the rich did not give us the greatest tax revenue increases as a percent of GDP in American History. They did help give us the greatest debt increase in history.

No taxes on Friend, Family & Fool (FFF) investments, Angel investments & Venture Capital are good. Low taxes on Wall Street's Large proven companies are bad. Even with double dividend taxes we had so much venture capital equity chasing start-ups that is caused the "Dot Com" bubble. Letting the rich fleece us on carried interest should be a crime.

"According to Dow Jones VentureSource, which tracks venture-backed companies, Chinese firms received 332 venture capital equity financing deals in 2011, surpassing the U.K.’s 274. The U.S. retained its lead with 3,209 deals. Each deal represents a single case of equity financing by a professional venture capital firm, corporation, other private equity firm or individual. Deals are an indicator of the emergence of start-up and growth companies in an economy. Venture capital firms are not only placing more bets on China, but bigger bets, as well."



I feel foolish even saying this, but Debt is not the result of collecting or saving, it is the result of spending.

If we spent nothing, we would have no debt.

If we spent less than we collected we would have no debt.

If we spent a little bit more than we collected, we would have small debt.

If we spent like a sailor on a three day leave, we'd have a bigger debt.

If we spent like a pimp who had three days to live, we'd have the kind of debt we currently suffer under.
 
As long as we're talking about the corporate income tax, it's worth it to give this data a look:

2-28-11tax-f2.jpg


Six Tests for Corporate Tax Reform — Center on Budget and Policy Priorities

"Despite concerns expressed about the size of the corporate tax rate, current corporate taxes are extremely low by historical standards, whether measured as a share of output [i.e., GDP] or based on the effective tax rate on income." [1]

Jane G. Gravelle and Thomas L. Hungerford, "Corporate Tax Reform: Issues for Congress," Congressional Research Service, updated April 6, 2010.
 
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As long as we're talking about the corporate income tax, it's worth it to give this data a look:

2-28-11tax-f2.jpg


Six Tests for Corporate Tax Reform — Center on Budget and Policy Priorities

"Despite concerns expressed about the size of the corporate tax rate, current corporate taxes are extremely low by historical standards, whether measured as a share of output [i.e., GDP] or based on the effective tax rate on income." [1]

Jane G. Gravelle and Thomas L. Hungerford, "Corporate Tax Reform: Issues for Congress," Congressional Research Service, updated April 6, 2010.

business taxes are a cost like any other that is passed on to customers. A business is a tax collector not a tax payer. We have a business tax that wastes business energy time money because liberals are too stupid to understand. To them its simply a way to punish the corporations they hate.
 
I feel foolish even saying this, but Debt is not the result of collecting or saving, it is the result of spending.

If we spent nothing, we would have no debt.

If we spent less than we collected we would have no debt.

If we spent a little bit more than we collected, we would have small debt.

If we spent like a sailor on a three day leave, we'd have a bigger debt.

If we spent like a pimp who had three days to live, we'd have the kind of debt we currently suffer under.

We know all this pipe dream of not spending. We always vote for the guy who says he will cut spending, yet he always turns around & spends like a pimp who has 3 days to live. Republicans fought Clinton & that lead to a balanced budget. Bush never met a spending bill he didn't like until the democrats took congress. Obama spent like crazy until we got enough republicans in to stop him. Bottom line is divided government saves us money. We are still adding debt at record rates while earnings are up but tax revenue is down. This also must be addressed. If we do not fix this the damage to the economy will be much worse.
 
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As long as we're talking about the corporate income tax, it's worth it to give this data a look:

2-28-11tax-f2.jpg


Six Tests for Corporate Tax Reform — Center on Budget and Policy Priorities

"Despite concerns expressed about the size of the corporate tax rate, current corporate taxes are extremely low by historical standards, whether measured as a share of output [i.e., GDP] or based on the effective tax rate on income." [1]

Jane G. Gravelle and Thomas L. Hungerford, "Corporate Tax Reform: Issues for Congress," Congressional Research Service, updated April 6, 2010.

business taxes are a cost like any other that is passed on to customers. A business is a tax collector not a tax payer. We have a business tax that wastes business energy time money because liberals are too stupid to understand. To them its simply a way to punish the corporations they hate.
Another profound statement by Ed. Jesus, save us all from the clowns.
 
Romney has said all along that he will close the tax loopholes to collect more tax on business & the rich.

Mitt Romney also told Republican donors which tax breaks he would consider eliminating as president. The three he named were the deduction for mortgage interest on vacation homes and the deductions for state and local taxes. Although his remarks were a bit vague, he seemed to suggest that he would eliminate them only for high-income households.

Under current tax law private equity investors and managers of hedge funds are allowed to treat bonuses like long-term investment income, called carried interest, taxable at the maximum 15 percent capital gains rate. Romney never invested or risked a dime of his money to get this low rate, this was his earned income. Others have to pay up to 35 percent taxes on their labor income. One of the main reasons Romney paid 13.9 percent in taxes on his $21.7 million income in 2010 is that a big chunk of that income came from performance bonuses still trickling in from private-equity investments he managed during his career at his former firm, Bain Capital.

We need to close this tax loophole.
 
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USA world highest corporate tax but not much revenue.

To optimize the tax revenue a lower tax is needed and loopholes and populistic political decission must be ended.

A lower corporate tax will in the Laffer curve give a higher tax income for the government. The curve shows that a medium tax rate is the optimum, and Norway maximises its proffits with a medium tax rate. USA has the highest tax rate and one of the lowest revenues. I also find it odd that what they call the land of freedom etc. has the highest corporate tax in the world? Who would investe and create jobs if the taxes are the highest in the world. Socialist Norway actually has a lower corporate tax than USA. To low taxes as for Ireland isn’t great that either. It is theoretical, but loopholes and populistic politicians destroys the theory that works so well in Norway.

600px-Neo-Laffer_curve.svg.png


However I think USA has a lot of tax loopholes made by populistic politcians, but with no loopholes it works perfect for Norway. Socialist Norway with a lower tax than USA and also a higher profitt. So why not tighten the loopholes and cut the corporate tax to a lower/medium level



These nations have higher VAT's and/or personal income taxes.

A better measure is tax revenue as a % of GDP.
 
USA world highest corporate tax but not much revenue.

To optimize the tax revenue a lower tax is needed and loopholes and populistic political decission must be ended.

A lower corporate tax will in the Laffer curve give a higher tax income for the government. The curve shows that a medium tax rate is the optimum, and Norway maximises its proffits with a medium tax rate. USA has the highest tax rate and one of the lowest revenues. I also find it odd that what they call the land of freedom etc. has the highest corporate tax in the world? Who would investe and create jobs if the taxes are the highest in the world. Socialist Norway actually has a lower corporate tax than USA. To low taxes as for Ireland isn’t great that either. It is theoretical, but loopholes and populistic politicians destroys the theory that works so well in Norway.

600px-Neo-Laffer_curve.svg.png


However I think USA has a lot of tax loopholes made by populistic politcians, but with no loopholes it works perfect for Norway. Socialist Norway with a lower tax than USA and also a higher profitt. So why not tighten the loopholes and cut the corporate tax to a lower/medium level



These nations have higher VAT's and/or personal income taxes.

A better measure is tax revenue as a % of GDP.

Country---------Tax burden% GDP-------Govt spending% GDP
USA--------------26.9%----------------------------38.9%----------------Spending more than tax income (Too much spending and to low taxes)
Norway----------42.1%---------------------------40.2%--------------------Budget surplus (Sensible tax rates)
Germany--------40.6%----------------------------43.7%-------------------About balance budget (sensible tax rates)
Greece-----------35.1%----------------------------46.8%-----------------Huge deficit( Problem too low taxes)

If you compare USA to more healthy economies like Germany and Norway, you’ll see that the government spending is about the same in germany, Norway and USA. THe US government spends so much money, and takes in to little taxes. Germany and Norway can deliver balance budgets because they take in enough taxes. But their governments dosent spend any more than the US even though they have more tax income.

Government spending - Wikipedia, the free encyclopedia

The diffrence for USA is the imbalance between tax income and government spending. Norways government spends 1% more(not much), but it takes in enough taxes to balance the budget.
USA is more like Greece, very low taxes and quit high government spending. You cant have both a good welfare system and low taxes.
 
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USA is more like Greece, very low taxes and quit high government spending.

more accurately, you would say American liberals are much like Greece,i.e., irresponsible.

You cant have both a good welfare system and low taxes.

more accurately, you would say you cant have a good welfare systems as long as liberals use it to create dependency and buy votes rather than as an incentive to help people in need.
 
USA is more like Greece, very low taxes and quit high government spending.

more accurately, you would say American liberals are much like Greece,i.e., irresponsible.

You cant have both a good welfare system and low taxes.

more accurately, you would say you cant have a good welfare systems as long as liberals use it to create dependency and buy votes rather than as an incentive to help people in need.

We don't need a good welfare system or well paid public employees. We need to hire more people. If the stimulus does not do it then you take money from the over paid public sector, welfare & the stimulus of the rich & use that to build this country WPA style. Pay a lower wage than private sector & hire all the unemployed to build sewer & water systems that the EPA has mandated the private sector pay for. Upgrade the power grid, rail, roads, bridges & fiber optic communication. Launch more satellites to improve GSP, guidance & tracking, weather forecasting & communications. All this work will give the WPA employees skills that the private sector will demand & infrastructure they can use. Lets stop paying able bodied workers to sit on their ass, get fat & burden the health-care system.
 

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