Lyrics & Knowledge Personal Pages Record Shop Auction Links Radio & Media Kids Membership Help
The Mudcat Cafesj



User Name Thread Name Subject Posted
GUEST,mark-s(on the road) BS: Revenue Neutral? Explain Please (47) RE: BS: Revenue Neutral? Explain Please 16 Oct 12

Same justification used by JFK in 1962. Lowering rates leads to an increase in economic activity. So by lowering rates on "X" you get more of "X", so you get the same or more revenue from "X" at the lower rate than you would have gotten from "X" at the higher rate.
Easy to understand at the top and bottom limits:
0% tax rate on "X" yields no revenue because there is no tax.
100% tax rate on "X" yields no revenue because there is no "X".
Somewhere in the middle is a tax rate which maximizes both - but - no way am I smart enough to tell you what it is!
Mark
(

Post to this Thread -

Back to the Main Forum Page

By clicking on the User Name, you will requery the forum for that user. You will see everything that he or she has posted with that Mudcat name.

By clicking on the Thread Name, you will be sent to the Forum on that thread as if you selected it from the main Mudcat Forum page.

By clicking on the Subject, you will also go to the thread as if you selected it from the original Forum page, but also go directly to that particular message.

By clicking on the Date (Posted), you will dig out every message posted that day.

Try it all, you will see.