to take more money from private citizens. Think of all the money running our #1 prison state in the world and imperial conquests overseas. And that’s just a fraction of the mismanagement of funds. The effective What Doesnt Kill You Disappoints Me Shirt that an individual or a corporation pays in taxes. The effective tax rate for individuals is the average rate at which their earned income. Such as wages, and unearned income, such as stock dividends, are taxed. The effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed. You’re taking that out of context. Nobody ever actually paid 90% tax rates (and it was income only – not capital gains).
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There were far more loopholes back then, and companies paid their execs muc. More with stock options and the like rather than with cash. Which has negative incentives mixed in. It What Doesnt Kill You Disappoints Me Shirt side” is. Is it the job of the government to pay for the basic requirements to run a society (roads, police, army) or should they maximize tax revenue at say, 65%) and redistribute the excess, either directly or in the form of benefits? People have been discussing the idea long before Laffer – his name just stuck to it somehow. Kennedy’s tax cuts were using the same logic – and historians centuries ago talked about how early in a dynasty low tax rates would bring in lots of revenue. But late in a dynasty high rates would bring in the same or less. If import tax is too high – it promotes smuggling.
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