The Laffer Curve Revenue vs Tax Rate
- To answer the question put by the Warlicks, below, "what Laffer thinks of HR 25", he told me personally, a couple of years ago, that he, "thinks it's a very good idea."The circumstances of that meeting are also interesting: it was at a meeting of active conservatives and libertarians (about 150) at a meeting room in a hotel near LAX (Los Angeles International Airport). I also met Steve Moore (Wall St. Journal) and Dick Morris (legendary political consultant) there. More on that momentarily.The circumstances were that all these 'name' people took turns speaking; I sought out Laffer and he and I spoke, one on one, with no bystanders although the room was packed.Consider this: no one else heard Laffer tell me that - no witnesses. Congressmen and people like Laffer are smart and know how to "maneuver" for their own best interest. He made me happy telling me what he thought I wanted to hear. Would he say that in public? He didn't when he had the chance that day. He has to consider who is listening and what they want to hear. After all, he has commissions to earn and bank accounts to stuff.I've also talked to a Board Member of Cato, an organization that should be the champion of FairTax, but isn't. That man told me that the founder and Chairman of Cato told him that the FairTax, "is a very good idea!" Do they promote the FairTax? Hell no!What's going on? Laffer, like Cato, caters to whomever will butter their bread. Will FairTax do that? Not so far. Will some corporation who wants to keep the tax benefits for which they've paid a fortune? You bet.Now, Steve Moore: I spoke to him, too, with one bystander. He gave a lot of respect to FairTax without saying that he endorsed it. Later, when he spoke, he asked for a show of hands between the FairTax and the "flat tax". Full disclosure: I had been handing out FairTax quicky fact cards all morning, but not everyone got one.To Moore's astonishment, the crowd (not neophytes) were 50-50 for FairTax or flat tax!! Astonished me, too! Does Moore acknowledge that in public or in his writings for the Wall Street Journal? No. The editorial board of the WSJ favors the flat tax and Moore, too, has mouths to feed.My two cents: until we tell the world how bad the income tax is ($1 trillion cost EVERY year, plus jerking us around to buy this but not that), and that the FairTax is a 9% TOTAL federal tax (including prebate, on a family of four at the MEDIAN income of $50K) we will not persuade many people.Bill Spillaneaka, 'the Village Idiot' (I must be cuz no one seems to get it; it must be me.)P.S. Morris smiled a lot, shook a lot of hands, including mine, spoke to the group, and didn't say anything of interest to this group.From: Mike or Marian Warlick <mmwarlick@...>
Sent: Thursday, December 27, 2012 7:59 AM
Subject: [FAIRTAX_DD] Fwd: FW: The Laffer Curve Revenue vs Tax Rate
Does anyone know what Laffer thinks of HR-25?
Happy New Year all.
Mike---------- Forwarded message ---------- From: Brown, Tom <Tom.Brown@...> Date: Sun, Dec 23, 2012 at 8:13 PM Subject: FW: The Laffer Curve Revenue vs Tax Rate To:-- Mike WarlickFAIRTAX = JOBS + FairTax needs YOU.I apologize in advance if you get more than one copy of this. That is just the way my “auto complete” works in Outlook…So, if the government raises taxes, doesn’t it get more of the monies that it needs? Not necessarily. The 5-minute video below is well done and explains the Laffer Curve. Become educated; watch the video…. And get involved….I now personally know two high income people that have told me that they are cutting back on their work hours and potential income because of their high tax rate. The Laffer Curve in the live.Thx,TomC. Tom Brown, Ph.D.Research Scientist, retired(H) 706.864.8382(C) 404.694.4535This video is about five minutes long and explains the relationship of tax rates and revenue produced. It is based on the data and report of Christina Romer and David Romer both professors at the University of California at Berkley, hardly a conservative bastion. Christina was the chair of President Obama’s Counsel on Economic Development, and the data was published in The American Economic Review. Watch the video and consider where you stand on the ever lingering debate in Washington about taxing to cover out-of-control spending. If you agree that we need a more pragmatic attitude about taxation, pass this on for others to grasp the truth.