Tax the Rich, Part III
Here‘s an interesting take (read the whole thing, it’s short!) on the Laffer Curve (the theoretical source of the arguments made by people like Rudy Giuliani, that cutting taxes increases government revenues). One reason is that the higher tax rates are, the more people will try to avoid them.Â Taking the logic, to it’s absurd conclusion:
If you’re the sort of person who is willing to use these tax avoidance schemes – and I would hazard to guess that not that many people in that situation are not – how low do tax rates have to be in order that you do not engage in those schemes? The answer: half a percent. Guess how low tax rates would have to be for someone making $200 million a year not to use the same schemes.
The implication, of course, is that we want to close the loopholes that allow corporations and theÂ wealthy to dodge paying their share, unless you find 0.5% tax rate on Paris Hilton’s income (I do love to pick on her, but fill in the blank with whoever you want that makes more in a year than whole towns will make in their lifetime) to be a reasonable amount. Do you? I don’t.