Posted by Daniel J. Mitchell on July 21, 2010
By Daniel J. Mitchell
The Wall Street Journal has an excellent editorial this morning on the obscure — but critically important — issue of measuring what happens to tax revenue in response to changes in tax policy. This is sometimes known as the dynamic scoring versus static scoring debate and sometimes referred to as the Laffer Curve controversy.
The key thing to understand [...]
Categories: Politics, Tax and Budget Policy |
Tags: Art Laffer, Double Taxation, Dynamic Scoring, Government and Politics, incentives, Income tax, JCT, Joint Committee on Taxation, laffer curve, marginal tax rates, Revenue Estimates, Static Scoring, Supply-side economics, tax rates, taxation | 
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Posted by Daniel J. Mitchell on June 22, 2010
By Daniel J. Mitchell
Smart statists understand that there are very strong Laffer Curve effects at the top of the income scale since investors and entrepreneurs have considerable ability to control the timing, level, and composition of their income. So if higher tax rates on upper-income taxpayers don’t collect much revenue, why is the left so insistent on class-warfare [...]
Categories: Politics, Tax and Budget Policy |
Tags: class warfare, Government and Politics, higher taxes, laffer curve, soak the rich, tax increases, taxation, Value-added tax, VAT | No Comments »
Posted by Daniel J. Mitchell on May 20, 2010
By Daniel J. Mitchell
David Ranson had a good column earlier this week in the Wall Street Journal explaining that federal tax revenues historically have hovered around 19 percent of gross domestic product, regardless whether tax rates are high or low. One reason for this relationship, as he explains, is that the Laffer Curve is a real-world constraint on [...]
Categories: Politics, Tax and Budget Policy |
Tags: big government, Government and Politics, government spending, International Economics and Development, laffer curve, leviathan, taxation | No Comments »
