The new tax plan has shown that Arthur Laffer’s analysis was correct.

[jv_coach]

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 shows the direct correlation between tax rates and tax revenue. The graph suggests that there is a certain tax rate the government should impose. To better understand the graph, you have to understand where placing the tax rate at either end of the X-axis would mean. If the government imposed a tax rate of 0 percent, the government would not collect any revenue. If the government imposed a tax rate of 100 percent, individuals would no longer work and businesses would no longer produce goods as there would be no incentive to do so. While there are varying schools of thought from economists on where the tax rate should be placed, economic principles show that lowering the tax rate gives more of an incentive to produce and can grow the economy.

We are finally seeing the Laffer Curve applied in real policy, as well as the predicted results. The new tax plan has significantly lowered taxes and helped stimulate growth for the economy.

 

[jv_coach]

the comment section for this piece is good reading also.

Any economy, every economy, is composed of individuals making choices in the moment, based upon a multitude of conditions, actual and perceived. Increasing taxes is the equivalent of a bee sting, you recoil from pain which interrupts your progress. It is shocking to see that it took almost 45 years for something so honest as the Laffer Curve to be acknowledged. Economics is human behavior on display, action, reaction. If I am stung by higher taxes I have less to spend on my neighbor's output.

[jv_coach]

The Laffer Curve was part of the reasoning behind the Reagan tax cuts. The left sold the idea that it was false because the deficit continued to grow after the cuts. The truth is Democrats grew spending faster than the economy could grow because of the tax cuts. Leftists can always spend faster than even they can steal (tax), which is why government depends upon the printing press, not taxes to finance itself.

[jv_coach]

Leftists tend to believe that reactions to tax rates are inelastic, that an increase in marginal rates or payroll taxes have no effect on production or labor, or that a price floor such as the minimum wage has no negative effects on employment.

Yet the very same folks want to raise "sin" taxes in order to incentivize people to quit smoking, drinking, eating fatty foods, drinking sugary drinks etc, by raising the costs of those products...