The myth of the Laffer Curve and Trump’s proposed tax plan…

[rightwinger]

Why should we cut taxes when we are $20 trillion in debt

Because the idea is to create growth....

Why do Democraps fight tooth and nail against any sort of spending cuts......unless it's military....?

Cutting taxes does not create growth

They just keep the extra money

 

[rightwinger]

It always amazes me that the same people that insist that taxes do not affect economic activity will be the first to seek to tax cigarettes, alcohol or what not in order to affect economic activity. Whether you agree with the laffer curve or not, the idea that taxation has no effect on people's economic activity is ridiculous. I've been in business for going on 30 years and I can assure you tax policy has a direct and substantial influence on my economic decisions.

Are you going to increase production if there is no additional market?

A tax cut without additional market is just taken as profit

 

[baileyn45]

Why should we cut taxes when we are $20 trillion in debt

Because the idea is to create growth....

Why do Democraps fight tooth and nail against any sort of spending cuts......unless it's military....?

Cutting taxes does not create growth

They just keep the extra money

My father bought new equipment and hired more people. The left always falls back to the super rich. My father was middle class, and not upper middle class. Reagan was the best thing that ever happened to him. It's the same old story, the left hates the super rich, they pass laws to go after business, the super rich laugh it off and the little guy gets hammered. Been watching it my whole life.

 

[baileyn45]

It always amazes me that the same people that insist that taxes do not affect economic activity will be the first to seek to tax cigarettes, alcohol or what not in order to affect economic activity. Whether you agree with the laffer curve or not, the idea that taxation has no effect on people's economic activity is ridiculous. I've been in business for going on 30 years and I can assure you tax policy has a direct and substantial influence on my economic decisions.

Are you going to increase production if there is no additional market?

A tax cut without additional market is just taken as profit

The market is there. I'm just trying to keep as much of that activity in my wheelhouse and not watch it go to Mexico, China or Vietnam. Again I've been through this many times. I just want a chance to compete, traditionally my main obstacle is my own govt doing everything they can to make that as difficult as possible all in the name of "those evil rich people".

 

[busybee01]

Right wing morons on here keep on wanting to REPEAT the same "trickle down" bullshit that Reagan started.....and we've all seen the debt AND deficit rise every single year since Ronnie's bullshit.

As of today, virtually NO large conglomerate pays the high tax rate...so, lowering makes zero difference. The wealthy have tons of money to re-invest in the economy if they wanted to.....instead, the high tax rate is there just to bullshit the Trump cultists that the problem lies there and not that greed is the root problem for hoarding.

Reagan did not start it. John F Kennedy said that a rising tide lifts all boats. If the rich do well then it trickles down to the middle class. The middle class make all the things the rich buy. The Laffer curve says that there is a tax level that optimizes revenue to the Treasury. Go above and below it then that means less revenue.

 

[Skull Pilot]

It all began in 1974, applied during the dreadful Reagan years (Reaganomics…aka trickle-down theory) and is NOW being touted by our beloved Trump to further screw up our teetering economy.

The Laffer Curve is a theory developed by supply-side economist Arthur Laffer to show the relationship between tax rates and the amount of tax revenue collected by governments. The curve is used to illustrate Laffer's main premise that the more an activity such as production is taxed, the less of it is generated.

Cutting taxes on America’s rich isn’t going to encourage them to invest more—those rich already have plenty to spend and aren’t spending it. Worse, by shifting wealth from middle class families to the moneyed few—a group that is able to consume far less than the working masses—this sort of policy suppresses consumption, which in turn discourages investment in productive businesses. Slowing demand drags on growth, causing debt and unemployment to rise.

Almost everything Republicans get wrong about the economy started with a cocktail napkin

Among many other failures, Reagan (and other GOPers) adoption of Laffer’s theory has basically given us a system that allows for the privatization of profits for big businesses, and the socialization of losses….leaving the middle class to subsidize the gambling by the rich on Wall Street.

I suppose you think taxes have no effect on productivity at all right?

Why not tax everyone and everything at 100% it matters not

lolol, why not tax everyone at ZERO, since you people believe that EVERY tax cut increases revenues.

You'll have to quote where I ever said that. And good luck because I never have.

But to deny that as taxes and the burdens of government increase that a related and proportional decrease in production happens is naive to the point of mental retardation.

The is an optimum size for government and we have exceeded it

 

[Skull Pilot]

If you set the income tax rate at zero - you get no revenue.

If you set it at 1%, you get some revenue.

If you set it at 5%, you get some more revenue.

but if you go to 10%, what? More revenue? What about 15%? 20%?

At what rate do you start getting less revenue?

Do any of you know?

So tell me does it make sense that the economy does better when more people keep more of their own money or does the economy do better when the government removes more money from the hands of the people ?

When the economy is doing better aren't more people making more money. aren't more people opening more businesses , aren't existing business expanding?

You do realize that more people making more money but paying a lower tax rate can actually result in more revenue than when fewer people were making less money and paying a higher tax rate don't you?

To quote Rockefeller

I would rather earn 1% off a 100 people's efforts than 100% of my own efforts.

 

[Skull Pilot]

All tax cuts pay for themselves......

What could possibly go wrong?

I never understood "we need to pay for the tax cut". Just cut spending.

How can you possibly dispute that the tax cuts will primarily go to the rich?

The people who pay taxes should get a cut.

Why should we cut taxes when we are $20 trillion in debt

We should cut spending before we raise taxes.

It's not lack of revenue that got us 20 trillion in debt it's overspending

 

[Skull Pilot]

Why should we cut taxes when we are $20 trillion in debt

Because the idea is to create growth....

Why do Democraps fight tooth and nail against any sort of spending cuts......unless it's military....?

Cutting taxes does not create growth

They just keep the extra money

And what happens to that money?

It gets put into the banking system where it is used to build homes, start business, etc.

And Americans have the worst savings rate in the industrialized world so really people are spending their money not saving it either way it winds up back in the economy

 

[nat4900]

The is an optimum size for government and we have exceeded it

Sure, just ask the folks in Texas, Florida, Puerto Rico and the Virgin Islands IF the federal government has "exceeded" its size and scope.....while wanting to repay by LOWER taxes for conservative donors.....

 

[Brain357]

If you set the income tax rate at zero - you get no revenue.

If you set it at 1%, you get some revenue.

If you set it at 5%, you get some more revenue.

but if you go to 10%, what? More revenue? What about 15%? 20%?

At what rate do you start getting less revenue?

Do any of you know?

So tell me does it make sense that the economy does better when more people keep more of their own money or does the economy do better when the government removes more money from the hands of the people ?

When the economy is doing better aren't more people making more money. aren't more people opening more businesses , aren't existing business expanding?

You do realize that more people making more money but paying a lower tax rate can actually result in more revenue than when fewer people were making less money and paying a higher tax rate don't you?

To quote Rockefeller

I would rather earn 1% off a 100 people's efforts than 100% of my own efforts.

Economic growth is not guaranteed. Look at the Bush years. The money has to go to those who will spend.

 

[Brain357]

All tax cuts pay for themselves......

What could possibly go wrong?

I never understood "we need to pay for the tax cut". Just cut spending.

How can you possibly dispute that the tax cuts will primarily go to the rich?

The people who pay taxes should get a cut.

Why should we cut taxes when we are $20 trillion in debt

We should cut spending before we raise taxes.

It's not lack of revenue that got us 20 trillion in debt it's overspending

Good luck with that. Repub congress just spends. Need a wall?