News for hackers. Stuff that matters.

A comment on You Can't Soak the Rich. Parent comment

Re:You Can't Soak the Rich by noonespecial on Tuesday May 20, 2008 @03:30PM (#195183)
A classic case of "lets find a graph to bolster our opinion". They may indeed be right. Raising taxes may produce a disincentive for capital to work and reduce GDP, actually reducing tax revenues. That fits in one sentence... what shall we fill the article with?

Comparing this wacky correlation with Boyle's law is just shameful. There are examples in the former eastern-blok countries where low flat taxes actually cut corruption and raised revenues. They would have done better just presenting these anecdotes than this!

[ Parent | on HN ]
Re:You Can't Soak the Rich by learneconomics on Wednesday May 21, 2008 @02:14PM (#196351)
Why is it shameful? It's not a "wacky correlation" - it's arguing that there is causation. It's basically saying "we have data proving the Laffer curve exists." That's not wacky. That's giving credence to a theory.

Low, flat-taxes are helpful but not politically tenable in the United States.

[ Parent | on HN ]