Difference between revisions of "Laffer curve"

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"...if they were nothing more than mere vandals, I would never have contacted the FBI."[1]
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The '''Laffer curve''' is a graphical representation of tax revenue as a function of the tax rate. It is named after [[Arthur Laffer]], an influential economist behind the tax cuts of President [[Ronald Reagan]].
 
  
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The Laffer curve shows that tax revenue is zero when the tax rate is zero percent, but that tax revenue also falls to zero when the tax rate reaches 100 percent, as people increasingly shift to nontaxable income, tax shelters, tax evasion, and leisure. At some tax rate between zero and 100 percent, the government collects maximum tax revenue. For a government that seeks to maximize tax revenue, this is the optimum tax rate. When the tax rate is below the optimum, the government can increase tax revenue by increasing the tax rate; but when the tax rate is above the optimum, the government can increase tax revenue only by decreasing the tax rate. This is a specific application of the general economic principle of changing marginal rates of substitution, in this case, of the substitution for alternatives to earning taxable income.
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Brian Macdonald, alias Karajou, is one of the most active Conservapedia generals admirals swabbies and a disgusting pile of flotsam in the waters of life. He possesses the strength, fury, intellect and ruthlessness of a hurricane.
  
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President [[John F. Kennedy]] explained the principle behind the Laffer curve in his address to the Economic Club of New York on December 14, 1962:
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Karajou is one of the best busiest troll-destructor sysops at Conservapedia, as his method involves automatic blocking of users who may happen to live near where a previous suspect has left their mark; the drawback of this onslaught is a bit too much collateral damage. To fix this, he has refused to enable his email checkbox, effectively forcing editors to bother contact somebody else instead. As of 28/01/08, he has claimed twelve /16 IP's souls, preventing Conservapedia from growing rapidly and the truth from setting you free.
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{{cquote|In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.<ref>James L. Sundquist, ''[http://books.google.com/books?id=CeqOAdn-LEgC Politics and Policy: the Eisenhower, Kennedy, and Johnson Years]'' (Washington, DC: Brookings Institution Press, 1968) ISBN 0815782225, p. 44; video: [http://www.jfklibrary.org/Asset+Tree/Asset+Viewers/Audio+Video+Asset+Viewer.htm?guid={A138FFB8-5B6A-4C6A-A8CC-70C6E4FF39DA}&type=Audio%20%29%29 Address at the Economic Club of New York, December 14, 1962], John F. Kennedy Presidential Library and Museum</ref>}}
 
  
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Few economists dispute the general principle of the Laffer curve, although the optimum tax rate itself is a matter of controversy. In the Reagan era, tax cuts led to a near doubling of federal tax receipts ($500 billion to $900 billion), an effect attributed to the Laffer curve.<ref>[http://www.cato.org/pubs/pas/pa-261.html Supply Tax Cuts and the Truth About the Reagan Economic Record], by William A. Niskanen and Stephen Moore, Cato Policy Analysis No. 261 October 22, 1996.</ref> However, some dispute this, <ref>Blanchard, O. ''Macroeconomics, 4th edition''. 2003, Upper Saddle River, New Jersey: Pearson Prentice Hall (p. 430-431, 500)</ref> claiming that the increased revenue can be at least partly attributed to a policy of [[deficit spending]].
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Reading comprehension is not his forte; much like RobSmith, debating with Karajou often leaves the impression that he isn't really aware of what you're saying, much less able to comprehend the logic behind it. But unlike Rob, Karajou is likely to become very angry that anyone has dared question him. He doesn't like being called Kowardjou, either.
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==References==
 
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<references/>
 
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[[category:economics]]
 

Revision as of 21:26, May 26, 2010

"...if they were nothing more than mere vandals, I would never have contacted the FBI."[1]

Brian Macdonald, alias Karajou, is one of the most active Conservapedia generals admirals swabbies and a disgusting pile of flotsam in the waters of life. He possesses the strength, fury, intellect and ruthlessness of a hurricane.

Karajou is one of the best busiest troll-destructor sysops at Conservapedia, as his method involves automatic blocking of users who may happen to live near where a previous suspect has left their mark; the drawback of this onslaught is a bit too much collateral damage. To fix this, he has refused to enable his email checkbox, effectively forcing editors to bother contact somebody else instead. As of 28/01/08, he has claimed twelve /16 IP's souls, preventing Conservapedia from growing rapidly and the truth from setting you free.

Reading comprehension is not his forte; much like RobSmith, debating with Karajou often leaves the impression that he isn't really aware of what you're saying, much less able to comprehend the logic behind it. But unlike Rob, Karajou is likely to become very angry that anyone has dared question him. He doesn't like being called Kowardjou, either.

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