And the Laffer Curve spotted in the wild again!

This raising of effective tax rates by taxing back child benefit:

Reducing hours

Why not? It will pay handsomely!

Yes, that\’s Ritchie, pointing to what he always denies is even possibly true. That in the face of \”too high\” tax rates people will cut the hours they work and thus tax revenue collected will also fall.

What\’s even more amusing is that in one of the papers he\’s done over the past couple of years, in order to make his sums, umm, sum, he had to assume the opposite.

That raising tax rates on the rich would increase the number of hours they worked.

Nothing like consistency in his work, is there. No, quite, nothing like it at all.

Oh, and this is joyous in the comments:

And yes – 100% tax is the one point bar 0% where Laffer works

Rilly? The Laffer Curve continues to slope upwards until a tax rate of 99.99999% and then revenue slumps to zero again?

Better get that written up, eh? Sure fire Nobel material that is.

2 thoughts on “And the Laffer Curve spotted in the wild again!”

  1. Uwe Rosler's Grandad

    I was wondering what sort of curve or line you would get if you set out the amount of times Tim pushes Ritchie in the vertical line and Ritchie spontaeously combusting on the horitzontal line. I’m hoping Tim reaches the optimum point and the graduate economist implodes in his office which he doesn’t pay business rates on! Oh how I would laugh!

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