BTW, I saw a calculation the other day that the theoretical peak of the Laffer curve is at 33% of income, for taxes from all sources. That sounds about right...intuitively correct. At 33%, if you go higher, then you start markedly affecting the opportunistic cost of working as you edge towards 50% and higher, thus affecting the value of working. If you go lower than 33%, you don't vastly increase the rewards for working, but you start bumping up against the mathematical reality of cutting too small of a percentage out of the income pie.But remember, the maximum wealth creation (not max tax receipts to gov't) occurs at a much lower rate.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra