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mLine 2:
Line 2: − When tax rates have been raised beyond the point of [[diminishing returns]] cutting a tax rate will result in a net increase of [[tax revenue]]. This may seem paradoxical but can be easily explained by the fact that lowering taxes can stimulate the economy. The best example is the tax on [[capital gains]]. This phenomenon is described by the [[Laffer curve]], which states there exists a point when increasing taxes actually decreases tax revenue. +
remove leading space
They give incentives to work, save, and invest, thus creating jobs and increasing economic growth. [http://www.askheritage.org/Issues.aspx?ID=41]
They give incentives to work, save, and invest, thus creating jobs and increasing economic growth. [http://www.askheritage.org/Issues.aspx?ID=41]
When tax rates have been raised beyond the point of [[diminishing returns]] cutting a tax rate will result in a net increase of [[tax revenue]]. This may seem paradoxical but can be easily explained by the fact that lowering taxes can stimulate the economy. The best example is the tax on [[capital gains]]. This phenomenon is described by the [[Laffer curve]], which states there exists a point when increasing taxes actually decreases tax revenue.
Laffer wrote:
Laffer wrote: