Archive for soak the rich
More Proof That Higher Taxes on the Rich Will Not Raise Significant Revenues
Posted by: | CommentsOn October 9, 2010, Harvard economics professor N. Gregory Mankiw wrote an article in the NY Times entitled “I Can Afford Higher Taxes. But They’ll Make Me Work Less.” In it, Mankiw describes how taxation is a considerable disincentive for him to take extra work upon himself (on top of his job as a professor) such as writing and speaking. And as you may know, tax revenues form work that’s not being done, amount to exactly zero dollars. That article carries a prime example... Read More→
The Laffer curve describes the relationship between tax rates and tax revenues collected. This relationship is key to understanding why taxing the rich as means of raising enough revenues to create a welfare state is extremely limited. The core explanation for why this is so, is that a tax increase discourages people from engaging in the taxable activity, (earn income in the case of income tax,) and it encourages them to avoid the tax (by shifting money around, taking it out of the country,... Read More→
