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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (360023)	11/24/2007 6:37:42 AM
From: Taro	Read Replies (1) \| Respond to of 1575538

Because the ever so soft "peak" of the Laffer Curve is going to shift to the right under a progressive tax system. Actually the problem with the Laffer curve under a progressive taxation system is, that it really is some kind of a composite curve summing up a lot of little individual "Laffer" curves. One might well have, or at least rather had in the past, top bracket incomes (and with them a large portion of the taxes paid) over at the right side with the majority of the (lower income) tax payers to the left. Since analyzing this is a complex political/economical issue, I doubt that real improvements could ever be achieved in spite of possibly understanding the theory behind it. Remember that Bernanke himself has said that most economists feel that most tax cuts don't pay for themselves. And that is pretty close to saying we are to the left of where ever the peak of the Laffer Curve is, isn't it? Against this speak the facts, that most recent tax cuts here and overseas have been followed by definite boosts in the economy. You may exempt the first tax cut by Reagan, which probably was overly ambitious and corrected later. Also you may as most liberals argue, that those economy improvements and increased tax revenues, which did indeed follow those tax cuts, where caused by other factors only. Taro