cross-posted from: https://lemmit.online/post/5566633
This is an automated archive made by the Lemmit Bot.
The original was posted on /r/todayilearned by /u/MechCADdie on 2025-04-04 08:19:11+00:00.
cross-posted from: https://lemmit.online/post/5566633
This is an automated archive made by the Lemmit Bot.
The original was posted on /r/todayilearned by /u/MechCADdie on 2025-04-04 08:19:11+00:00.
In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the… Anyone? Anyone?.. the Great Depression, passed the… Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act? Which, anyone? Raised or lowered?.. raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression. Today we have a similar debate over this. Anyone know what this is? Class? Anyone? Anyone? Anyone seen this before? The Laffer Curve. Anyone know what this says? It says that at this point on the revenue curve, you will get exactly the same amount of revenue as at this point. This is very controversial. Does anyone know what Vice President Bush called this in 1980? Anyone? Something-d-o-o economics. Voodoo economics.
Worth noting Laffers claim had already been proven to be likely true by the time that was filmed. The claim is you can set a tax rate so high that it can encourage tax evasion, avoidance, and fraud and that reducing the rate below this level can bring in as much if not more tax revenue which was demonstrated to be likely true in 1983.
Or we could just fund the IRS since it’s a profit center.
We could do both?
Laffer curve in political practice is BS. It is proven that you raise 0 revenue at 100% tax rate because no one is actually paid to work, then. The political distortion is “therefore, always lower taxes for more revenue”.
No it makes sense it just isn’t scientific nor does it justify any cut after 1983.
That was my point on how it is misused.