Categories
Economics

Understanding the Laffer Curve

> The key takeaway is that the IRS collected fives times as much income tax from the rich when the tax rate was far lower. This isn’t just an example of the Laffer Curve. It’s the Laffer Curve on steroids and it’s one of those rare examples of a tax cut paying for itself.

Dan Mitchell points out that people on both sides of the aisle need to understand the Laffer Curve a little better.