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Yes, and the fact that the cons simply assert that the current tax rate (whatever it may by at any given time) is firmly to the right of the peak is an astonishing leap of faith, to say the least.

But of course, faith doesn't require rigor.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman

by dvx (dvx.clt št gmail dotcom) on Sat Jan 7th, 2006 at 08:36:59 AM EST
[ Parent ]
yes, both rdf's and your opinion are correct IMO.  I have not seen any studies that attempt to use real world data to prove the existence of the curve, or to plot the curve holding other factors concept.  It's just a somewhat intuitively appealling concept, particularly at the extremes--ie 90% marginal tax rates and 10% marginal tax rates.  But intuition just doeszn't cut it in the middle part of the curve, where most of the real world is.
by wchurchill on Sat Jan 7th, 2006 at 10:17:05 AM EST
[ Parent ]
I've certainly never heard of a case where someone was able to derive a Laffer Curve.  Often, the Supply-Siders will point to Jack Kennedy's 1963 tax cuts as evidence of the Laffer Curve's existence.  And it is, I think, a fair example, but it's important to remember that marginal rates were 90% prior to Kennedy's cuts.  That's an incredibly high rate.

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Sat Jan 7th, 2006 at 11:08:21 AM EST
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