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Pay taxes?
There's someone you should know about:
The man who influenced tax codes with π ππππππ
// A THREAD //
There's someone you should know about:
The man who influenced tax codes with π ππππππ
// A THREAD //
Arthur Laffer
An economist most known for his creation, the Laffer Curve
Which he drew ... on a napkin
An economist most known for his creation, the Laffer Curve
Which he drew ... on a napkin
The curve shows the relationship between tax rates and revenue.
{ Ex: With a 40% tax rate, every 1% increase may yield a 0.5% fall in revenue }
{ Ex: With a 40% tax rate, every 1% increase may yield a 0.5% fall in revenue }
Why does this matter?
Because the Laffer Curve created supply-side economics.
A theory that's impacted tax codes since Reagan and Thatcher.
Pesky taxes.
I'd bet a kidney that you dislike them.
Because the Laffer Curve created supply-side economics.
A theory that's impacted tax codes since Reagan and Thatcher.
Pesky taxes.
I'd bet a kidney that you dislike them.
Prior to Reagan, U.S. marginal tax rates on the rich were high.
Extremely high.
Once the supply-side was solidified, top tax rates were slashed.
The rationale went something like this:
Extremely high.
Once the supply-side was solidified, top tax rates were slashed.
The rationale went something like this:
Lower taxes for business owners & the 1% β Keep more money
More money β Higher profits
Higher profits β More investment
More investment β More growth, higher wages
More growth, higher wages β More tax revenue
More money β Higher profits
Higher profits β More investment
More investment β More growth, higher wages
More growth, higher wages β More tax revenue
Who doesn't want growth & higher wages?
It makes it easier to live comfortably.
So politicians go easy on the job creators.
It's vital to their public image & re-election.
It makes it easier to live comfortably.
So politicians go easy on the job creators.
It's vital to their public image & re-election.
It's also important for having their wallets fattened.
Due to this, politicians win:
- Money
- Elections
- Status
By maintaining a tax system that favors business & capital in:
- Rates
- Loopholes
- Credits
- Deductibles
Due to this, politicians win:
- Money
- Elections
- Status
By maintaining a tax system that favors business & capital in:
- Rates
- Loopholes
- Credits
- Deductibles
To refresh:
β The tax scheme that Trump exploited is a result of supply-side & special interests
β It does not prioritize labor income
β Policymakers benefit by falling in line
β The tax scheme that Trump exploited is a result of supply-side & special interests
β It does not prioritize labor income
β Policymakers benefit by falling in line
The last point is why
Your hashtags
Your social media rants
None of that shit is going to change the tax code.
Ever.
Politicians can't profit from that.
Your hashtags
Your social media rants
None of that shit is going to change the tax code.
Ever.
Politicians can't profit from that.
You don't have the power to change someone else's tax burden.
You have the power to change your own tax burden.
Change how you earn and you'll change how much you keep.
You have the power to change your own tax burden.
Change how you earn and you'll change how much you keep.
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