Date: Mon, 6 Oct 2014 11:27:15 -0400
From: “John R Dykers”
Subject: Muddylaces post and the Laffer Curve
Thank you for introducing the Laffer curve to our political discussion in Chatham County.
For Chatlisters not familiar with the Laffer curve, it is Dr.. Laffer’s research showing how at some point raising taxes discourages economic activity and begins to decrease tax revenue. Conversely lowering tax rates increases economic activity and increases tax revenue. The precise point or level of taxation at which this occurs varies for different taxes, income taxes, sales taxes, property taxes, etc.
There is also the ‘hassel factor’ of multiple taxes and the cost of collecting them vs revenue generated. These all need to be considered, especially as we often hope somebody else will pay for services we wish to see delivered by government and using the power of government to tax versus doing the same things ourselves, either individually or through civic organizations, service organizations, faith based organizations, and all Non Governmental Organizations.
John Dykers