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Politics : Formerly About Advanced Micro Devices
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To: Qone0 who wrote (1480447)8/26/2024 11:51:18 AM
From: Tenchusatsu  Read Replies (1) of 1580207
 
Qone0,
The Laffer curve simply states that tax revenue collected will be the same at 20% tax and a 80% tax. With a 50% rate being the highest.
That's not correct. The Laffer curve doesn't necessarily have to peak at 50%. Nor does it necessarily mean that a 20% tax and an 80% tax will always return the same amount of revenue.

All the Laffer curve illustrates is that, at some point, increasing taxes will decrease tax revenue. That point may be at 50%. It may be at 65%. It may be at 35%. It's complicated by the fact that the tax code itself is incredibly complicated.

One thing is for certain. The 91% top tax bracket under Eisenhower did NOT generate any revenue. All it did was drive away wealth toward tax shelters. Hence the reason why JFK lowered it.

I find it hilarious that Democrats these days STILL bring up the myth of the 91% tax bracket, because by all measures it was a failure.

Tenchusatsu
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