Hot Air » dynamic tax analysis http://hotair.com The world’s first, full-service conservative Internet broadcast network Thu, 20 Jun 2013 02:01:16 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.1 Surprise: investors shifting resources to avoid tax hikes next year http://hotair.com/archives/2012/12/11/surprise-investors-shifting-resources-to-avoid-tax-hikes-next-year/ http://hotair.com/archives/2012/12/11/surprise-investors-shifting-resources-to-avoid-tax-hikes-next-year/#comments Tue, 11 Dec 2012 14:21:52 +0000 Ed Morrissey http://hotair.com/?p=234048

Static vs dynamic analysis.

Remember the difference between static and dynamic tax analysis?  The former posits that tax changes produces no change in market behavior, so that hiking taxes by 10% gets you 10% more in revenue.  The latter assumes that changes in tax codes forces markets to adapt, so that rate hikes risk lowering revenues, and lowering rates [...]

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