
McClintock: Life On The Downside Of The Laffer Curve
Congressman Tom McClintock gave an outstanding speech in the well of the House of Representatives earlier this week. You can watch him deliver the remarks here, or you can read them below…
M. Speaker:
The Laffer Curve is a simple but elegant method of demonstrating how increasing taxes reduces economic productivity until a point of equilibrium is reached when further tax hikes actually reduce revenue.
If the tax rate is zero, tax revenues are zero. But if the tax rate is 100 percent, tax revenues also reach zero, because there’s no point in working.