unbeliever Posted July 31, 2015 Author Share Posted July 31, 2015 (edited) Laffer was wrong about where optimal revenue occurs. ---------- Post added 31-07-2015 at 15:19 ---------- Laffer was wrong where the optimal revenue point was. You think the ability to draw a curve graph makes it right? Laffer expressed no opinion on the revenue maximising rate for the top rate of UK income tax. I have provided you with evidence that it is below 45%. You have not countered it. I've given you ample opportunity. Edited July 31, 2015 by unbeliever Link to comment Share on other sites More sharing options...
TJC1 Posted July 31, 2015 Share Posted July 31, 2015 The supply side of a conceptual description of why increasing a tax rate above a certain level actually reduces tax revenue... The supply would be the people earning money and in that tax bracket, and the entire problem is that people aren't stupid enough to continue to do more work or make more money when they gain little benefit from it. Laffer didnt invent supply side economics, tipping points or curve graphs. Link to comment Share on other sites More sharing options...
unbeliever Posted July 31, 2015 Author Share Posted July 31, 2015 No, it's a large number of mostly specific empirical studies. Where's your evidence for this? The government statistics article you linked to explains that self-assessment revenue went down when the 50% rate was introduced because people were able to account some of their income for that year as having been received in the previous year, when the rate was still lower. It then rebounded. It's higher again now because incomes are higher now, due to inflation etc. Also, the 45% rate is a marginal rate, not the overall tax rate that the Laffer curve is referring to. The logic and maths apply to a marginal rate in exactly the same way. If it was a rebound, why did revenue increase when the rate was dropped to 45% and remain high thereafter? Link to comment Share on other sites More sharing options...
TJC1 Posted July 31, 2015 Share Posted July 31, 2015 Laffer expressed no opinion on the revenue maximising rate for the top rate of UK income tax. I have provided you with evidence that it is below 45%. You have not countered it. I've given you ample opportunity. Theres evidence successive governments have sought to reduce taxation. Its a bit like the tories moving the child poverty line though. It still exists somewhere. Thanks for pointing out a hole in his theory. One of many. Link to comment Share on other sites More sharing options...
unbeliever Posted July 31, 2015 Author Share Posted July 31, 2015 Theres evidence successive governments have sought to reduce taxation. Its a bit like the tories moving the child poverty line though. It still exists somewhere. Thanks for pointing out a hole in his theory. One of many. I'm done with you. CaptainSwing is making a coherent case based on facts and logic that I'm wrong about where the revenue peak is. I'd much rather debate with him. Link to comment Share on other sites More sharing options...
TJC1 Posted July 31, 2015 Share Posted July 31, 2015 Laffer expressed no opinion on the revenue maximising rate for the top rate of UK income tax. I have provided you with evidence that it is below 45%. You have not countered it. I've given you ample opportunity. I'm done with you. CaptainSwing is making a coherent case based on facts and logic that I'm wrong about where the revenue peak is. I'd much rather debate with him. Youve no evidence increasing taxes now would reduce revenue. Link to comment Share on other sites More sharing options...
Cyclone Posted July 31, 2015 Share Posted July 31, 2015 Laffer didnt invent supply side economics, tipping points or curve graphs. Nobody claimed he did AFAIK. You seem to be confused as to what's even being discussed. At some point you're denying that the laffer curve describes a real phenomenon, but then later you're claiming that laffer just put the peak in the wrong place. And in reality he didn't specify where the peak was, he just described the general concept. Link to comment Share on other sites More sharing options...
*_ash_* Posted July 31, 2015 Share Posted July 31, 2015 TJC, are you in a wind-up mode in last few days or what? I think my head is going to explode. Link to comment Share on other sites More sharing options...
TJC1 Posted July 31, 2015 Share Posted July 31, 2015 Nobody claimed he did AFAIK. You seem to be confused as to what's even being discussed. At some point you're denying that the laffer curve describes a real phenomenon, but then later you're claiming that laffer just put the peak in the wrong place. And in reality he didn't specify where the peak was, he just described the general concept. I understand a curve graph has been named the laffer curve. We will agree to disagree on the rest. Link to comment Share on other sites More sharing options...
Cyclone Posted July 31, 2015 Share Posted July 31, 2015 We can agree on your interpretation if you can show where laffer said what value was the peak... I say you can't, because he didn't. Link to comment Share on other sites More sharing options...
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