Where does the Laffer Curve Bend?

Discussion in 'Economy' started by KissMy, Aug 13, 2010.

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Where does the Laffer Curve Bend?

Poll closed Oct 12, 2010.
  1. 30%

    2 vote(s)
    16.7%
  2. 35%

    2 vote(s)
    16.7%
  3. 40%

    2 vote(s)
    16.7%
  4. 45%

    1 vote(s)
    8.3%
  5. 50%

    3 vote(s)
    25.0%
  6. 55%

    2 vote(s)
    16.7%
  7. 60%

    0 vote(s)
    0.0%
  8. 65%

    0 vote(s)
    0.0%
  9. 70%

    0 vote(s)
    0.0%
  10. 75%

    0 vote(s)
    0.0%
  1. KissMy
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    KissMy Free Breast Exam

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    Where does the Laffer Curve Bend?

    At what tax rate do you stop striving your hardest to make the most money you can?

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    Last edited: Aug 14, 2010
  2. Baruch Menachem
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    It helps to think of it as an inverted marginal revenue curve. The bottom of a marginal revenue curve is where marginal revenues meet marginal costs. Where the gains from doing something are less than the costs of doing something, people stop doing it.
     
  3. Toro
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    Toro Diamond Member

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    It never goes to zero.

    If it went to zero, then communist societies would have zero revenue, which of course they don't.
     
  4. Toro
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    Toro Diamond Member

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  5. Baruch Menachem
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    The cost of being beaten, killed, or worse is part of the marginal cost factored in.

    But slave societies always have very low productivity.
     
  6. KissMy
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    Most people do not realize the percent of, or add up all the taxes they pay every year from their earnings. Medicare, SS, Federal, State, County, City, Healthcare, License, Sales Tax, Real-estate Tax, Personal Property Tax, Automobile Tax, Phone Taxes, Gas Tax, Utility Tax's, Permit Fees, Mandatory Unemployment Insurance, Mandatory Auto Insurance, Mandatory Healthcare Insurance, Sin Taxes.

    Not to mention Government Fines & Penalties or Bank/Credit/Debit Exchange Fees or interest if you are in debt.

    The average worker is paying well over 70% of their earnings out to someone who spends it for them & they don't even realize it. The Gold barter trade system is looking very very good to me!
     
    Last edited: Aug 14, 2010
  7. zzzz
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    zzzz Just a regular American

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    By bending I surmise you mean when does the curve start to decline. This percentage is everchanging due to cost of living rise and fall, wage increases, employment and other factors and therefore is purely a guessing game. And I beleive that in reality a curve would not result but a rollercoaster type diagram would better illustrate the relationship between taxation and revenue. Of course quantifying a rollercoaster diagram is a lot more difficult than a simple curve.:eusa_eh:
     
  8. KissMy
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    I mean what percent of taxation will cause you personally to produce less tax revenue. By taking a poll of individuals we can get some idea of where the curve really starts to decline. Then we can figure out at what point the US debt, unfunded liabilities & interest surpasses total taxable revenue the government can squeeze out of the people. Then you will truly know the dollar & the country is fucked.
     
  9. loosecannon
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    loosecannon Senior Member

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    The Laffer curve, Armey curve and your survey generated results are all hypotheticals. For example in the real world if the economy is growing at a rate of 10%/anum the results will be dramatically different than if the economy is contracting at 10%/anum.

    Likewise is YOUR economy contracting or expanding?

    And then there is always that factor wherein just because you WANT to work harder and make more money can you?

    And how does anybody know that tax rates are the sole causation of tax revenues in any given budget cycle? (they aren't)

    These type of hypotheticals have no relationship with the real world. They only have relationships with imaginary worlds.

    They are instructive but essentially only as abstracts.
     
    Last edited: Aug 15, 2010
  10. KissMy
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    Taxes & credit are the main factors governing expansion & contraction of the economy. They are also the main factors governing how much money you can make & taxes you pay.

    Ask Japan just how imaginary they think the Laffer Curve is.
     
    Last edited: Aug 15, 2010

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