It's called the Laffer curve. Art Laffer was an economist who worked for Reagan, among others. Like supply and demand curves, it's conceptually a sound but notional theory.
> -----Original Message----- > From: Mercedes [mailto:mercedes-boun...@okiebenz.com] On Behalf Of G > Mann via Mercedes > Sent: Tuesday, August 09, 2016 7:47 PM > To: Mercedes Discussion List <mercedes@okiebenz.com> > Cc: G Mann <g2ma...@gmail.com> > Subject: Re: [MBZ] OT: political signs > > Actually, lowering taxes across the board produces more tax revenue. I know, > heads are spinning at that comment. Follow along for just a bit. > > Lower taxes means less burden on both workers and businesses. That directly > equates to more business orders placed, more goods sold, and more work > hours paid for to produce those goods, thus, more wages paid. > > Each time a dollar is spent, it pays a tax. Spend more dollars, collect more > taxes. > > If you tax a dollar at 90% and it only gets spent one time.. you collect 90 > cents. > Spending produces a taxable event so "people" stop spending, banks stop > loaning, and industry moves out of the country to places where they don't > have to deal with regulation and confiscatory taxes. Like China, India, > Mexico, > etc etc.. > > If you tax a dollar at 5% and both industry and labor spends that dollar and > keeps circulating it, which is what happens when a fair tax rate is used, like > back in "1952", the total taxes collected are exponentially higher. Dollars > stay > on the move, creating "taxable events". > > To gain perspective, an example. In May of 2016, every cargo ship in the > world was setting in port, or at anchor, or empty. There is a web site which > tracks every ship in the world, you can look it up.. They were all setting > because factories had not received sufficient orders for the previous months > to fill them. Warehouses that would receive their loads were at capacity, > [capacity defined by willingness to buy and warehouse unsold goods] and > companies that bought goods from those warehouses simply were not > buying... because people were either broke or holding what ever funds they > had, rather than buy more goods.. > > Simple fact... if the government taxed every worker at 100% of annual > income, it would only run the government, at it's present rate of spending, > for about 5 days. > We don't need more taxes.. we need more restraint on those doing the > spending, as a starting point. > > _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
