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Politics : John McCain for President -- Ignore unavailable to you. Want to Upgrade?

To: Dan B. who wrote (5484)	10/30/2008 8:38:08 PM
From: RetiredNow	Read Replies (1) \| Respond to of 6579

What people don't remember about the Laffer curve is that there was a point of diminishing returns, until it has a reversal. It's an upside-down "U". It's calculus where we can find the point of maximizing tax revenues through hitting just the right tax rate structure. Republicans conveniently only remember the second half of the Laffer curve where tax revenues decrease as tax rates increase. But they should be remembering the first half where tax revenues increase as tax rates increase until you reach that optimal point. I'd argue based on what I've seen in my lifetime, that we hit it almost perfectly in the 1990's, when we maximized tax revenues at the same time as spurring unprecedented economic growth. We should have left well enough alone. Obama will take the tax structure back to the 1990's. I'm all for it. Laffer curve: t* represents the rate of taxation at which maximal revenue is generated.