Breakfast in America: April 25, 2012

Good morning!

  • One of the central concepts of supply-side economics is the Laffer curve, basically the concept that there is an optimal level of taxation above which people make less money and thus have less to be taxed, and below which people pay less in taxes while not earning any more. Conservatives act as though cutting taxes is always a good thing, but the Laffer curve says otherwise. Now a couple of economists have demonstrated that the optimal point on the Laffer curve is much much higher than current taxes.

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