Surely by now everyone has heard of the Laffer Curve, but for those who have not here is a brief introductory video from The Center for Freedom and Prosperity :
Dr. Thomas Sowell, writing yesterday on National Review Online offers some clear data in support of the theory:
The first big cut in income taxes came in the 1920s, at the urging of secretary of the Treasury Andrew Mellon. He argued that a reduction of the tax rates would increase the tax revenues. What actually happened?
In 1920, when the top tax rate was 73 percent, for people making over $100,000 a year, the federal government collected just over $700 million in income taxes — and 30 percent of that was paid by people making over $100,000. After a series of tax cuts brought the top rate down to 24 percent, the federal government collected more than a billion dollars in income-tax revenue — and people making over $100,000 a year now paid 65 percent of the taxes.
To read the whole piece by Dr. Sowell, click on the link below.
End Deficit-Reduction Commissions - Thomas Sowell - National Review Online
