| ▲ | convolvatron 10 hours ago | |
every single time taxes for the wealthy were cut, it was argued that the laffler curve would make up for the loss in federal tax receipts, thus leaving us with the same level of services and a larger economy. every single time its resulted in lower tax intake compensated with more deficit spending. | ||
| ▲ | hunterpayne 8 hours ago | parent [-] | |
Everytime we increase taxes past the optimum point of the Laffer curve, the government takes in less total tax. If you aren't past the optimum point, it won't. And your claims about loss of collected taxes haven't really ever come true at the US federal level. Total tax receipts in the 1980s were very high and there were several major tax cuts then. The same pattern usually follows, but the effect of the Laffer curve was deformed during the 1990s due to the dot com boom. Tax cuts in the 2000s increased tax receipts. The Trump cuts in the late 2010s did the same. The last 6 CA tax increases all resulted in less taxes being collected the following year. Now there are multiple things that can impact total tax collected for CA (mostly the S&P500), but those factors all varied in those 6 tax increases. As for federal tax, if a tax cut doesn't result in an increase in taxes collected, then you are likely below the optimum point in the curve. PS The government doesn't have a tax collection problem, it has a spending problem. On average, every public sector job costs 3 jobs in the private sector. If the size of a government is choking the economy, then messing about with the tax rate won't fix the problem. | ||