laffer curve_Philip curve_kinked curve(2)

At the top of the curve, when tax rates are 100%, then government revenue is zero. If the government takes all personal income and business profit, then no one works or produces goods, so the tax base disappears.

Whats missing from the chart? Numbers! In other words, the actual tax rates and the percent increase revenue generated. If Laffer had put numbers on the diagram, the government could say, Hmm, lets increase the tax rate from 24 percentto 25 percent to get a 2 percent increase in the tax base. If you look at that chart, it appears that the Prohibitive Range starts at about a 50 percent tax rate. But if that were the case, the chart would be useless today. Why? The federal government hasnt taxed anyone at 50 percent (or higher) since 1986. (Source: Historical Tax Rates, Tax Foundation.)

Laffer avoided being more specific. Whether tax cuts stimulate the economy (where you are on the curve) depends on six factors:

The type of tax system in place.

How fast the economy is growing.

How high taxes are already.

Tax loopholes.

The ease of entry into non-taxable, underground activities.

The economys productivity level.

Any one of these factors can prevent tax cuts from stimulating economic growth.

Tax cuts work in the Prohibitive Range by increasing consumer spending and demand. That encourages business growth and hiring. It results in increased government revenues in the long-run. Thats because the economic effect of the tax cut outweighs the arithmetic effect of the tax cut. Laffer mentions another benefit of a faster-growing economy. It reduces government spending on unemployment benefits and other social welfare programs.

But lowering taxes outside of the Prohibitive Range does not stimulate the economy enough to offset reduced revenues. In fact, tax cuts during a recession or a period of slow growth harm the economy. During recessions, government-funded unemployment benefits, social welfare programs, and jobs boost the economy enough to keep it from going into a depression.

本文来自电脑杂谈，转载请注明本文网址：
http://www.pc-fly.com/a/tongxinshuyu/article-51613-2.html