The Laffer Curve - Why I'm An Economic Conservative

Arthur Laffer came up with the Laffer Curve to illustrate how taxes work particularly how increasing taxes can lead to lower tax revenue and how decreasing taxes can actually lead to more.

The Laffer Curve is why Conservatives believe that taxes should be lower.

I not only explain what the Laffer Curve is and how its supposed to work, but why it doesn't work with our current progressive tax structure. It would work if we had a Flat Tax.

Here's more on the Laffer Curve - http://www.heritage.org/research/reports/2004/06/the-laffer-curve-past-presen...

Category:

News & Politics

Tags:

• economics
• government
• taxes
• obama
• reagan
• limbaugh

[DirtyPoopers]

CUT cap balance ! !

im usually pretty liberal when it comes to social issues, but totally conservative in my economic views. We gotta unleash our free market and stop gov. from overspending and regulating.

[stormscm]

@DirtyPoopers Thanks for the comment. I agree. Let supply and demand work.

[rictorn]

@DirtyPoopers the free market dosent work, like stiglitys says the reason why adam smiths invisible hand is invisible is because it dose not exist

[rictorn]

all the laffer curve shows is any goverment can creat a short term boom which turns to a bust and the ordinary tax payers get life with the bill

[rictorn]

the laffer curve has no data points because its made up nonsense,its economics that rises tax revuneus (see thatcher, argentina, south east asia, ragon and teh western worlds recent massive crash for neoliberal boom bust cycles and callagn (labour chancler in the 60's) and heath (conservative prime minister in teh 70's) for a more 'bastardised kansian' (stimulus in good economic times like kaynes said not to do)

[BOBBYROCKSYOURWORLD]

Many Of you people are mad because he is right...like he said if rich feel like the are paying reasonable amounts they will not search for loopholes...and why look for a loophole when you have a good deal? I love this and will be sharing it with everyone i can=]

[noldi123]

you fail to point out that most rich people's point A is at a lower point than people who are from middle class background. the rich find all kinds of loopholes to make their taxes close to 0 in some cases, such as GE. im afraid your diagram is flawed in this regards

[darlinglittlemammy]

I agree with your ideas. However, many people disagree greatly about where your point A is found; some economists suggest that it is as high as 70%. I imagine that if there was a true flat tax (as in one and only one rate with absolutely no deductions) the revenue maximizing point would be much lower than 70%.

That being said, the goal shouldn't be to maximize revenue. The goal should be only to raise enough revenue to pay for minimal government. 11% is lower than point A but that's great!

[prowokator]

No links or info of your sources. This video is pointless and about as trustworthy as Fox News.

[DirtyPoopers]

@DirtyPoopers btw a flat tax makes so much sense, i dont know why we dont have one