From: "Gary Britt" 

How do you know where you are on the curve?  When it stops working.  When
lowering tax RATES doesn't result in increased tax receipts, you may have
gone too far.  So far it has worked every time.  Kennedy, Reagan, Bush.
Reagan cut the top tax rate to 28% and then eliminated the capital gains
tax preference.  Then the dems fiddled with things creeping the brackets
back up to where they are now 40% is the top rate.  At 40% the argument for
capital gains tax relief becomes operative again so we get a capital gains
tax rate reduction, more complication and more fiddling.

It was simpler and better to have 3 brackets and the top rate at 28% as under Reagan.

We also know that cutting the top rate to 28% results in an INCREASE in
revenues to the government.  So we know from experience under Reagan that
the tax rate at which Laffer's curve no longer works is LOWER than 28%.  I
don't think we are in danger of setting a top tax rate lower than 28% any
time soon, hence my blanket statement.

We don't know for sure at what rate Laffer's curve no longer works, but we
do know that rate is lower than 28%.  My wild ass guess would be somewhere
between 0% and 20%.  Maybe around God's level of taxation of 10%?

Gary


"Robert Comer"  wrote in
message news:43983ddc{at}w3.nls.net...
> Gary, here's a site that kind of describes what you are implying, but it
> doesn't quite jive with what you are saying in that raising taxes also
> increases revenue up to a certain point, just like lower taxes may
increase
> revenue down to a certain point.  As you approach the sweet spot tax rate
> from either side, you are increasing revenue, but the question is just
where
> we on the laffer curve and I don't think I've seen that defined anywhere.
>
> http://www.answers.com/topic/laffer-curve
>
> --
> Bob Comer (It's a more interesting topic than I suspected at first. )
>
>
> "Gary Britt"  wrote in message
> news:439839d0$1{at}w3.nls.net...
> > It is an accurate blanket statement for the relevant range of taxation
> > upon
> > which all modern economies operate.  The fact that its not true at
> > extremely
> > low rates of taxation never applicable in your country and not
applicable
> > in
> > ours since around 1920 or 1930, is completely irrelevant.
> >
> > Gary
> >
> > "Adam"
<""4thwormcastfromthemolehill\"{at}the field.near the
bridge"> wrote
> > in
> > message news:4397e196$1{at}w3.nls.net...
> >> Gary Britt wrote:
> >> > Its not a linear curve.
> >> >
> >>
> >> No mention by you of curves etc. your statement of beleief is:
> >>
> >> "Tax Rates go down, Tax Receipts go UP"
> >>
> >> This is a fallacy.
> >>
> >> > Next Question:  How do you know where you are on the curve.
> >> >
> >> > Next Answer:  When it stops working, you've gone too
far.  So far its
> > worked
> >> > every time.
> >> >
> >>
> >> Riiiight.
> >>
> >> So it's not a blanket statement & it depends on many
other factors such
> >> as which taxes are cut, to which sector, what state the economy is in
> >> etc.
> >>
> >> Merely paroting taxes go down receipts go up is a simple lie being
> >> repeated by those who wish to believe it were true. At very high level
> >> of taxes it works but the US is not at very high levels of taxes.
> >>
> >> What your country is looking at is servicing historic levels of debt
> >> (with interest etc) & where this is an added extra for your gov to
spend
> >> your money on.
> >>
> >> If the patience of foreigners runs out before you have started
seriously
> >> cutting the debt then you're in for a very bumpy landing.
> >>
> >>
> >> Adam
> >>
> >> > Gary
> >> >
> >> > "Adam"
<""4thwormcastfromthemolehill\"{at}the field.near the
bridge">
> >> > wrote
> > in
> >> > message news:439747b6$1{at}w3.nls.net...
> >> >
> >> >>Gary Britt wrote:
> >> >>
> >> >>>Anyone can pick selective quotes out of context
to construct an
> >> >
> >> > incorrect
> >> >
> >> >>>and fallacious argument.  That is wikipedia on
this subject.
> >> >>>
> >> >>>I know the facts.  I lived them.  I read about
them as things
actually
> >> >>>happened.  I don't need to read some know nothing nobody's
uncensored
> >> >>>wikipedia misleading to incorrect thoughts to
know what I lived
> >> >>>through
> >> >
> >> > and
> >> >
> >> >>>read about at the time it was happening.
> >> >>>
> >> >>>Tax Rates go down, Tax Receipts go UP.  Tax Rates
go down, and the
> >> >>>percentage of tax receipts paid by the wealth goes UP.
> >> >>>
> >> >>
> >> >>It's a fallacy. OK then cut rates to zero & how
do tax receipts go
up?
> >> >>
> >> >>Adam
> >> >
> >> >
> >> >
> >
> >
>
>

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