Laffer Curve Wreaks Havoc in UK: "Allow me to elaborate. In most cases, punitive tax hikes do raise revenue, but not as much as politicians predict. As explained in this three-part video series, this is because it takes a very significant reduction in taxable income to offset the revenue-generating impact of the higher tax rate.
But if a tax increase imposes a lot of damage and taxpayers have enough flexibility in their financial affairs, then it's possible that a tax hike can lose revenue (or, as we saw with Reagan's "tax cuts for the rich," a well-designed reduction in tax rates can actually generate higher revenue)."
'via Blog this'
No comments:
Post a Comment