Prager U: The Laffer Curve and the key to efficient tax collection
posted at 3:11 pm on February 3, 2014 by Ed Morrissey
“Efficient,” in this case, is the maximum revenue for the least impact on taxpayers. Prager University presents Tim Groseclose to explain the Laffer Curve, the basis for Reagan’s tax reforms, and the need to find the “hump” in the curve in order to determine how to squeeze the most money out of the economy without killing economic activity. The hump is a lot lower on the curve, Groseclose explains, and confirmation comes from an unexpected source:
Should Taxes Be Higher? It’s the million dollar question! Up? Down? No change? Where in the world should taxes go? In election years, the question of tax rates fills the airwaves. In non-election years, the question of tax rates, again, fills the airwaves. So what’s the answer? UCLA Professor of Economics Tim Groseclose explains his research on the topic. Basically, there’s a certain point at which higher tax rates actually reduce the amount of revenue the government collects. What’s that point? When are tax rates too high? Learn a valuable lesson in economics, and public policy.