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

To: Alighieri who wrote (530023)	11/17/2009 6:41:27 PM
From: i-node	2 Recommendations Respond to of 1574616

Yeah, yeah...the curve makes a very broad statement even by laffer's own admission...my question is what's the right rate for the times and economic conditions? If you claim that this is high, then what's right and why? You apparently miss the underlying logic behind the the Laffer Curve -- which is that when you cut taxes, you increase economic productivity. ALWAYS. The goal is to cut tax rates to a point that, when combined with the increased economic growth, yield maximal revenue. The corollary is that if your objective is NOT maximizing revenue (e.g., if it is economic stimulus), you can cut tax rates to stimulate economic growth via increasing deficits (i.e., cut tax rates beyond the point where revenue is maximized). In an economy like this, extremely low tax rates are called for. Capital gain rate cuts have, throughout history, ALWAYS been highly stimulative. But a "payroll tax holiday" would have done far more toward getting jobs going again.