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comment by b_b
b_b  ·  4511 days ago  ·  link  ·    ·  parent  ·  post: Six Policies Economists Love (And Politicians Hate)
As I understand it the Laffer curve is an idealized fantasy in the first place, no? What is his magical t_star? Obviously the curve is much more complex than one symmetric (or even asymmetric) peak. If there is a t_star, it is a weighted average over all incomes anyway, so what's the point of talking about it as if its a thing unto itself. Proclaiming that we should all pay one tax rate so that the world conforms to your idealized version of it more faithfully is a bit egomaniacle, in my opinion.




JakobVirgil  ·  4511 days ago  ·  link  ·  
in mine as well.

but if one takes the folk theory as

There is a point were lowering taxes or for the rich specifically leads to an increase in revenues. One can find regions where that is true. My mathematical model which like all models should not be confused with fact suggests that the point when this Laffer balderdash becomes true is when growth is well above 10%. So maybe the chinese could benefit?