- Apr 2013
- La La Land North
The part of your post I bolded just added another variable that adds to the fact that attempting to use this theoretical concept is useless for quantitative work.That's just flat out false. Obviously a 0% tax rate will result in no revenue, and if 100% results in maximum revenue then that would be said point. If it's not 100%, then it has to be somewhere between 0% and 100%. Sorry, but the very logical foundation for your statement simply isn't there. You can debate where that maximum revenue point is, but not a claim that there is no point of maximum revenue. Even if we don't know what the shape of the curve is, that wouldn't prove that a point of maximum revenue does not exist.
That might be someone's argument, but it's not the most important one. How economically wasteful a tax rate is would be a more important and useful argument.
I don't buy this. What's your source to support this?
Even if it were true, that's not a valid reason for increasing taxes. We can cut down the size of government to deal with this problem.
If you say so, but this thread isn't about some political party's tax plan.
BTW, 100% rate leads to zero revenue again.