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Author: MadCapitalist Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 734991  
Subject: Re: Optimal Tax Policy Date: 10/16/2012 2:38 PM
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The optimal tax policy raises the absolute minimum amount of tax revenue necessary to fund government functions to protect our individual rights, and it does so with a minimal amount of economic distortion. In other words, tax consideration of potential courses of action is minimized.

But over the long term, your statement and mine are the same, or at least reach the same numbers. An optimal tax policy realizes that any taxes more than absolutely necessary lower economic growth, and therefore lower long run tax receipts.


I seriously doubt that it would be true. The farther you decrease the tax levels, the less benefit to economic growth that you get from decreasing rates further. I suppose in terms of future value you could be correct, but I doubt that the present value of the future tax revenue stream would be maximized with the optimal tax policy as I laid out above.
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