Wednesday, March 5, 2008

Eat (off) The Rich

I have just read this article:

The Wall Street Journal The Tax Threat to Prosperity By ARTHUR B. LAFFER January 25, 2008; Page A15

This juicy bit caught mt attention:
"Since 1980, statutory marginal tax rates have fallen dramatically. The highest marginal income tax rate in 1980 was 70%. Today it is 35%. In the year Ronald Reagan took office (1981) the top 1% of income earners paid 17.58% of all federal income taxes. Twenty-five years later, in 2005, the top 1% paid 39.38% of all income taxes."

Good onya, you "rich pricks". The article explains how lowering taxes at the top end has a dramatic effect on the level of avoidance.

http://groups.google.com/group/rec.music.artists.springsteen/browse_thread/thread/0ef1acde5d699b1f/517cd1ec3beb8e22

or

http://tinyurl.com/22v7pk

A great little video on the Laffer Curve:




Hat tip: NZBR (just catching up on reading their "Update" and "Perspectives" emails)

3 comments:

Mark Wadsworth said...

Part 2 of that is better.

Altho' they fall for The Old Lie that Ireland has done so well because of cuts to corporation tax, there is a brilliant example about how the tax on 'luxury good' (in this case yachts) didn't hurt rich people (who just bought their yachts abroad instead) but made loads of yacht-makers (if that's a word) redundant and the overall impact on tax revenues was negative.

electro-kevin said...

Interesting.

Do you have something similar to the vid on the relation between interest, inflation, gdp, trade deficits etc ?

Acorn said...

A good starter for balance of payment theory is at CATO Institute.

The following explains the balance between savings; investment; exports and imports.

http://www.freetrade.org/node/61