Laffer Curve does not address the multiple other considerations as to whether or not increasing or decreasing tax revenue is appropriate

Date: Wed, 8 Oct 2014 09:09:20 -0400
From: “John R Dykers”
Subject: Laffer Curve – Taurus Balog post

Dear Taurus Balog,

Your elucidations are accurate, and please note that I said “at some point” which acknowledges the complexity of determining what rates are ‘effective’ for increasing or decreasing tax revenue. % also requires a definition, as % of what? Income? Property valuation? Sales? Road use?

The Laffer Curve does not address the multiple other considerations as to whether or not increasing or decreasing tax revenue is appropriate. This is a function of effeciency or ineffeciency of any particular governmental unit in returning services commensurate with the taxes collected and the perceived value of the services to differing segments of the population. e.g. raising property taxes or sales taxes, or user fees, in order to pay higher teacher salaries, or fund art projects, or build infrastructure to attract businesses, or provide law enforcement capability or fire fighters or libraries, etc.

I am sure we agree that those things that are taxed are discouraged to some degree and it is our job as an electorate to understand this sufficiently to weigh this against the benefits derived from each governmental units use of tax revenue to perform services we cannot do as individuals or in non-govermental organizations.

John Dykers