re: #251 thedopefishlives

Seriously though, I’m trying to understand how a tax CUT will “pay for itself”. By definition, a tax cut reduces tax revenue. How is that going to be made up? The same number of people are paying taxes, just less of it.

Laffer Curve, a theoretical construct that posits that when tax rates rise above a certain level, further increases will dampen economic activity so much that tax revenues will fall.

The axes are tax rates on the X, and tax revenues on the Y, and the curve is an inverted U. It’s an article of faith on the Right that we are ALWAYS on the far side of the Ymax, so that if we decrease X, we’ll get more Y.

The thing is, ever single time we decrease X, we decrease Y. Which means we’re on the OTHER side of the U.