Understanding the Laffer Curve
Here's a rather good exposition of the theory behind the Laffer Curve:
Given the increase in the tax burden under Labour, so we now have a greater tax burden than Germany, it's all the more important that politicians understand this. And that voters understand why all this matters.
Previous
Blogs: Clive Davis | Melanie Phillips | Americano | Coffee House | Trading Floor
Actions: Print this article | Email to a friend | Permalink | Comments (1)
Post this entry to: del.icio.us | Digg | Newsvine | NowPublic | Reddit
Advertisement
Stephen Pollard's Blog Roll
Oliver Kamm
Politics, economics and culture from the master. Unmissable.
Daniel Finkelstein's Times Comment Central
A daily must-read.
Tim Worstall
Lots of interesting nibbles - and a ruthless swatter of economic gibberish.
Marginal Revolution
Tyler Cowen's riveting economic blog.
Harry's Place
Must-read left of centre blog from writers who understand the threat to the West.
Thought Experiments
The peerless Bryan Appleyard's blog.
Opera Chic
An American in Milan, on opera.
Intermezzo
A London-based classical music enthusiast.
Jessica Duchen's classical music blog
Does what it says on the tin.
Samizdata
Libertarian blog, packed every day.
Norm's blog
The thoroughly sensible thoughts of renowned left-wing academic Norman Geras, Professor of Government at Manchester. And cricket, too.
Public Interest
Peter Briffa's inimitable take on The Yazzmonster and other assorted demons.
Reform
The public sector reform group; their website is an invaluable source of data and ideas.
Centre for the New Europe
The leading European public policy think tank.
Latest blog posts
sponsored links
Test Drive a Land Rover
Great choice of versatile vehicles for the drive of your life..
Sky TV, Broadband & Talk from £16 a Month
Sky TV & free broadband packages available from £16 a month. Choose from a standard free sky box, sky plus or sky hd.
Test Drive a Land Rover
Great choice of versatile vehicles for the drive of your life..
Sky TV, Broadband & Talk from £16 a Month
Sky TV & free broadband packages available from £16 a month. Choose from a standard free sky box, sky plus...
ROME CENTRE
PORTA METRONIA, ROME Standing high on the top of one of the seven hills of Rome- the Coelian- this unique
City Breaks. ROME and PARIS
ROME and PARIS: over 350 holiday rentals apartments listed: visit www.romanreference.com and www.parisreference.com or call +39 0648 903612.
Jewellery. RUFFS (Estd. 1904).
Goldsmiths by Design Welcome to Ruffs! You have found a company of Goldsmiths that specialises in the manufacture, amongst other
Spectator Business | Apollo Magazine
Corporate | Advertising | Privacy | Terms
Spectator, 22 Old Queen Street, London, SW1H 9HP
All Articles and Content Copyright ©2008 by The Spectator | All Rights Reserved
Richard
February 7th, 2008 4:43amCouple of points In the UK income tax is over 30% (with NI contributions) rising to 40%, so around the peak of the Laffer Curve, so tax cuts are more beneficial that this suggests. This person suggests that most tax cuts do not increase revenue, but in the long term that is incorrect. Any mathematician will tell you that a geometric sequence will always overtake an arithmetic sequence in the end. Adding tax will add at an arithmetic rate, but reducing tax will improve economic growth by a percentage, albeit perhaps a small one. However percentage growth is a geometric progression.