Blake Couch
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There’s nothing wrong with the Laffer Curve.

Old timers like me and those who know the history will remember that it was used by the GOP to justify cutting taxes even while they argued against deficit spending. If we slash income tax rates, revenue will actually increase, they claimed.
10:13 PM - Apr 21, 2024
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Blake Couch
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thread 2/3
And they’re still saying that. Investment and productivity will increase, thereby increasing taxable income. But even if you take the Curve at face value, it only predicts that effect when tax rates are near confiscatory levels. And we’ve never had income tax rates that high in this country.
10:13 PM - Apr 21, 2024
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Blake Couch
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The GOP in the 70s and 80s, when they were touting the Laffer Curve, were effectively ignoring the left half of it. So when they cut taxes under Reagan, revenue did NOT increase. Likewise under W and TFG. That’s because we were and are on the left half of the Curve, where tax cuts reduce revenue.
10:13 PM - Apr 21, 2024
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