http://blogs.marketwatch.com/fundmastery/2010/07/02/does-hiking-tax-rates-raise-more-revenue/ "... Unfortunately, tinkering with the tax code seems to be irresistible to almost all politicians. In addition, raising taxes on the ‘rich’ is a populist theme many politicians have adopted. This idea is widespread even though there is a very good chance that higher tax rates will not lead to higher tax revenues. Our political leaders often misunderstand the long-term consequences of tax law changes and they advocate policies that bear little or no relationship to economic reality.
As you can see from these charts, soaking the rich by raising tax rates generally does not work. And, there can be collateral damage in that high tax rates almost always reduce economic activity which hurts everyone. If the goal is to maximize economic growth and generate adequate tax revenues, we know what makes sense. ..."
http://en.wikipedia.org/wiki/Hauser%27s_law
Is "fair share" the original 7%, or always just "more?" Is "rich" simply "makes more than I do?" Who decides? When 51% are dependent on forced wealth redistribution from 49%, the policies that resulted in that dependency ain't gonna get changed until the whole house of cards comes tumbling down.
'Course, with DC's credit rating under serious threat from so wantonly throwing other people's -- and other GENERATIONS' -- money around for so long, that day may well not be far off...
http://blogs.marketwatch.com/fundmastery/2010/07/02/does-hiking-tax-rates-raise-more-revenue/
ReplyDelete"... Unfortunately, tinkering with the tax code seems to be irresistible to almost all politicians. In addition, raising taxes on the ‘rich’ is a populist theme many politicians have adopted. This idea is widespread even though there is a very good chance that higher tax rates will not lead to higher tax revenues. Our political leaders often misunderstand the long-term consequences of tax law changes and they advocate policies that bear little or no relationship to economic reality.
As you can see from these charts, soaking the rich by raising tax rates generally does not work. And, there can be collateral damage in that high tax rates almost always reduce economic activity which hurts everyone. If the goal is to maximize economic growth and generate adequate tax revenues, we know what makes sense. ..."
http://en.wikipedia.org/wiki/Hauser%27s_law
Is "fair share" the original 7%, or always just "more?" Is "rich" simply "makes more than I do?" Who decides? When 51% are dependent on forced wealth redistribution from 49%, the policies that resulted in that dependency ain't gonna get changed until the whole house of cards comes tumbling down.
'Course, with DC's credit rating under serious threat from so wantonly throwing other people's -- and other GENERATIONS' -- money around for so long, that day may well not be far off...
Fred,
ReplyDeleteI'm sorry, but I don't understand the point. What is the graph showing?
Does it have something to do with the negative slope on the red line?
Randy - confusedandbefuddled