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| | Arthur Laffer - Wikipedia, the free encyclopedia |
 | | Laffer is best known for the Laffer curve, which demonstrates that in certain situations, a decrease in tax rates could result in an increase in tax revenues. | | | Laffer's innovation was to state that the inflection point in the curve was at a much lower level than previously believed: so low that current tax rates were above the level where revenue is maximized. | | | The sophomoric notion that such a curve purports to show that cutting tax rates automatically reduces deficits should never have seduced any profound 'insider.' Lower tax rates may or may not reduce the budget deficit. |
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http://en.wikipedia.org/wiki/Arthur_Laffer
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| | Ashish's Niti: So what's wrong with the Laffer Curve? |
| | Laffer is the father of the "Laffer Curve", the idea that tax cuts will not increase the budget deficit but would rather be self-financing given the strong suplly side response of labor, savings and investment to tax cuts. | | | The trouble with the Laffer curve is that it's based on the notion that the purpose of taxes is to fund the operations of the government. | | | One of the misconceptions of the Laffer Curve is that there is only one tax rate that will raise a certain amount of revenue. |
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http://ashish.typepad.com/ashishs_niti/2005/07/so_whats_wrong_.html
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| | Some Observation on the Laffer Curve |
| | Thus, the shape of the Laffer curve only follows if we assume that the budget is balanced, i.e., taxes will be raised to cover government expenses for wages in the public sector. | | | Figure 1 describes a special case which could easily be interpreted as a Laffer curve if the variable on the abscissa denotes the tax rate and the variable on the ordinate the tax revenues. | | | The two curves are related in a way that is familiar from elementary price theory if we interpret the tax rate as a price variable and the relation between the tax base and the tax rate as a standard demand function. |
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http://www.gmu.edu/jbc/fest/files/Monissen.htm
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| | Tim Worstall: That Laffer Curve Stuff. |
| | The laffer curve is purely about determining the point at which tax takings are maximised, it has nothing to say about whether, or not, the government should be taking and spending the money in the first place. | | | Surely the Laffer Curve is just an illustration that it is not necessarily the case that tax revenue increases with tax rates as most people assume. | | | Surely optimum is better defined in terms of whether additional public spending at the margin can be justified relative to the costs of the taxes required to finance that spending. |
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http://timworstall.typepad.com/timworstall/2006/01/that_laffer_cur.html
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| | QandO: The Laffer Curve |
| | The Laffer curve says absolutely nothing about the real world where we are facing the fiscal trifecta of Social Security and Medicare unfunded liabilities in addition to the alternative minimum tax crunch and our ballooning trade deficit. | | | Posted by: Gary Boatwright at August 29, 2004 02:06 PM The Laffer curve says absolutely nothing about the real world where we are facing the fiscal trifecta of Social Security and Medicare unfunded liabilities in addition to the alternative minimum tax crunch and our ballooning trade deficit. | | | The Laffer Curve posits that below the inflection point, an increase in taxes results in an increase in tax revenues. |
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http://qando.net/archives/003912.htm
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| | Thomas E. Nugent on the Laffer Curve and Chris Rohmann on NRO Financial |
| | The Laffer curve was used to justify large tax cuts in the early 1980s, when President Reagan’s economic advisors were convinced that tax rates had passed the optimal level. | | | The application of the curve to the structure of the tax system allows for a visual representation of what happens when taxpayers respond to disincentives to pay taxes: Tax revenues fall when tax rates are high. | | | The principal of the Laffer curve is present in virtually every business decision where the overall objective is to maximize profitability through the determination of setting prices consistent with the ability and desire of the consumer to buy. |
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http://www.nationalreview.com/nrof_nugent/nugent200404210842.asp
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| | The Laffer Curve: Past, Present, and Future |
| | I used the so-called Laffer Curve all the time in my classes and with anyone else who would listen to me to illustrate the trade-off between tax rates and tax revenues. | | | Between these two extremes there are two tax rates that will collect the same amount of revenue: a high tax rate on a small tax base and a low tax rate on a large tax base. | | | Arthur B. Laffer is the founder and chairman of Laffer Associates, an economic research and consulting firm. |
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http://www.heritage.org/Research/Taxes/bg1765.cfm
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| | Kudlow's Money Politic$: The Left, Taxes and the Laffer Curve |
| | Laffer grabbed a napkin and pen and sketched a curve on the napkin illustrating the trade-off between tax rates and tax revenues in what is now known as the “Laffer Curve.” The illustration showed exactly what the recent IRS data showed: A decrease in tax rates results in an increase in tax revenues. | | | To be technically accurate, this is only true if the tax rate being cut currently falls on the right hand side of the peak of the Laffer curve. | | | Even Bartlett warns, "Of course, it would be a mistake to conclude that tax increases will not raise the wealthy's tax share or that tax rate cuts always will." |
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http://lkmp.blogspot.com/2005/12/left-taxes-and-laffer-curve.html
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| | Memo, 3-12-98; Defending the Laffer Curve |
| | In the private sector, the Laffer Curve is understood as being axiomatic. | | | He is incorrect in stating that the Laffer Curve -- which is simply the Law of Diminishing Returns as it is applied to tax policy -- is a "cornerstone" of supply-side economics. | | | Increasing the price of a private good or a private service beyond a certain point will reduce sales and revenues. |
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http://www.polyconomics.com/searchbase/03-12-98.html
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| | Lesson 2, Spring Semester 1999; Taxes, Revenues and the "Laffer Curve" |
| | A zero tax would seem to be inconsistent with the Laffer Curve, but capital gains have to be seen as something which should not be subject to taxation at all, and that any tax on capgains causes overall government revenues to decline. | | | If rates are not lowered consistent with this new lower level of demand, output will fall to some level consistent with a point along the prohibitive side of the "Laffer curve." Following World War I, for example, the wartime tax rates were left in place and greatly contributed to the recession of 1919-20. | | | But as the contrary character is much more common, ’tis to be feared that taxes all over Europe are multiplying to such a degree as will entirely crush all art and industry; tho' perhaps, their first increase, together with other circumstances, might have contributed to the growth of these advantages. |
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http://www.polyconomics.com/searchbase/02-12-99.html
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| | The Laffer Curve |
| | Remember, the Laffer Curve does not promise to balance the budget. | | | The Laffer Curve does not promise to force elected representatives to propose and enact lower spending programs. | | | The Laffer Curve does not claim to know exactly what tax rate is the "right" tax rate. |
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http://www.vistech.net/users/rsturge/laffercu.html
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| | The Smith Center: Laffer Curve Conference |
| | Economist Arthur Laffer originated the Laffer Curve idea-- that under the right circumstances, tax rate reductions can result in increases in total taxes paid. | | | The Smith Center for Private Enterprise Studies at CSUH, together with the Scott Probasco Chair of Free Enterprise at UTC, cosponsored a national conference on Innovative Applications of the Laffer Curve on April 13 in Washington, DC. | | | The event took place within the four-day annual meeting of Association of Private Enterprise Education. |
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http://www.sbe.csuhayward.edu/~sbesc/laffer.html
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| | The Laffer Curve - Who Pays How Much? [Virtual Economy] |
| | Laffer and other right-wing economists used the curve to argue that taxes were currently too high and should therefore be reduced to encourage incentives and harder work (a supply-side policy | | | He suggested that, as taxes increased from fairly low levels, tax revenue received by the government would also increase. | | | T* represents the optimum tax rate where the maximum amount of tax revenue can be collected. |
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http://www.bized.ac.uk/virtual/economy/policy/tools/income/inctaxth5.htm
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| | HUMAN EVENTS ONLINE - Laffer Curve Works Again by Jerry Bowyer |
| | The Laffer Curve, popularized by economist Arthur Laffer, says the government can maximize tax revenue by setting the tax rate at the peak of the revenue curve, and that raising taxes beyond that peak can actually decrease tax revenues. | | | It varies over time, but monitoring tax receipts and how they respond to changes in the tax rate can help tell us which side of the curve we’re on. | | | Despite cutting tax rates in May 2003, tax receipts for this two-month period have risen for three consecutive years. |
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http://www.humaneventsonline.com/article.php?id=11159
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| | Deinonychus antirrhopus |
| | Economist Arthur Laffer made a very interesting supposition: If tax rates are high enough, then cutting taxes might actually generate more revenue for the government, or at least pay for themselves. | | | The purpose of cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus. | | | The Laffer Curve offers the false promise that we can cut taxes without making any sacrifice on the spending side, and that's simply not true. |
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http://www.steveverdon.com
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| | Fiscal File |
| | The Laffer curve relates for each tax rate the expected total tax revenues. | | | "Evidence on the high-income Laffer curve from six decades of tax reform" | | | For low rates, tax rate and tax revenues move in the same way. |
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http://www.iref-europe.org/ang/fil/fil_laffer.htm
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| | Sketching the Laffer Curve |
| | The Laffer Curve helped launch the Reaganomics Revolution here at home and a frenzy of tax rate cutting around the globe that continues to this day. | | | This occurred with Laffer unable to get Cheney to see how two tax rates would produce the same revenue, one at a higher lever of production than the other. | | | All I could do was make private predictions to Bartley and my colleagues on what would happen unless income-tax rates were cut to offset the effect inflation had already had in pushing the work force into higher tax brackets. |
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http://www.yorktownpatriot.com/printer_78.shtml
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| | The Conspiracy to Keep You Poor and Stupid |
| | He embodied the idea as the famous "Laffer curve," which illustrates that government will earn no revenues at all if tax rates are either zero or 100%. | | | As general guidance, Laffer gave me five common-sense questions to ask, to make an intelligent guess about whether a given tax cut is likely to lead to a supply-side revenue increase. | | | Somewhere in between is a tax rate at which government revenue is maximized. |
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http://www.poorandstupid.com/2003_03_23_chronArchive.asp
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| | Laffer Curve Pays Off Again |
| | This reality follows the economic theory created by economist Arthur Laffer, and known as the Laffer Curve, which suggests the relationship between tax rates and tax revenues collected by governments. | | | The cuts - meaning more earnings will remain in the pockets and bank accounts of the earners, if they choose not to spend it - also provide more income for taxpayers, part of which is taxed by the government, he says. | | | The higher the tax rates beyond a certain point, the less incentive workers have to be productive, since they are not receiving the earnings anyway. |
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http://www.newsmax.com/archives/ic/2006/1/13/155318.shtml
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| | Having the last Laffer curve Samizdata.net |
| | The curve describes cynicism in the extreme: extracting the maximum amount of tax revenue from a gradually more discouraged work force. | | | While I admire the logic of The Laffer Curve, I get vaguely ill thinking about optimal tax rates from the government's point of view. | | | How Laffer's ideas add anything beyond the normal concepts of supply and demand has always eluded me. |
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http://www.samizdata.net/blog/archives/005178.html
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| | Arthur Laffer Biography |
| | Arthur B. Laffer is the founder and chairman of Laffer Associates, an economic research and consulting firm that provides investment-research services to institutional asset managers. | | | Since its inception in 1979, the firm's research has focused on the interconnecting macroeconomic, political and demographic changes affecting global financial markets. | | | He was a member of the Executive Committee of the Reagan/Bush Finance Committee in 1984 and was a founding member of the Reagan Executive Advisory Committee for the presidential race of 1980. |
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http://www.barberusa.com/finance/laffer_arthur_bio.html
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| | CommonSenseDesk: Laffer |
| | Captain Ed discusses the currency of the Laffer curve. | | | If you are not truly appalled ~ then you clearly have not been paying attention. | | | Listed below are links to weblogs that reference Laffer: |
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http://www.commonsensedesk.com/2005/07/laffer.html
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| | Riding The Right Curve - CBS News |
| | Now, the Laffer curve is tracking a business-led expansion that is throwing off record budget revenues while corporate profits are soaring. | | | Profits are the mother’s milk of business, the economy, and stocks, and are laying the foundation for even heftier job gains. | | | Reagan economic guru Art Laffer taught us 30 years ago that lower tax rates ignite economic growth. |
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http://cbsnews.com/track/rss/stories/2006/03/13/opinion/main1393083.shtml?...
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| | The Politburo Diktat: The Laugher Curve |
| | In the early Eighties, the economist Arthur Laffer popularized the Laffer Curve, as illustrated, showing the relationship between government revenues and tax rates. | | | It summarized the intuitively obvious notion that as tax rates approach confiscatory levels, taxable economic activity would decline and in consequence so would the Fed's take. | | | Laffer noted two decades ago, some of that will generate more of the desirable result. |
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http://acepilots.com/mt/archives/000520.html
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| | Of Monomania and the Laffer Curve |
| | Republicans love to say that cutting taxes on the richest Americans actually | | | But Laffer recognized that at some point, what you gain from these effects is more than lost from simply collecting at a lower rate. | | | It’s the famous Laffer curve — and it’s true, up to a point. |
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http://www.andrewtobias.com/newcolumns/060104.html
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| | Stephen Pollard • Legal Laffer curve |
| | What I mean is, a point where there are so many laws that the State cannot possibly enforce them and their agents start to wilt under the pressure of trying to do so. | | | Could there be such a thing a 'Legal Laffer Curve'? |
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http://www.stephenpollard.net/001215.html
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| | Division of Labour: Laffer Curve of Life II (Chicago Marathon Results) |
| | Laffer Curve of Life II (Chicago Marathon Results) | | | Division of Labour: Laffer Curve of Life II (Chicago Marathon Results) | | | Regard to our own private happiness and interest, too, appear upon many occasions very laudable principles of action. |
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http://divisionoflabour.com/archives/001167.php
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