miércoles, 11 de agosto de 2010

Where does the Laffer curve blend?

Interesting article.

From all the answers this is the one I find closer to my view:

Martin Feldstein, George F. Baker Professor of Economics, Harvard University, former chairman, Council of Economic Advisors:

"Why look for the rate that maximizes revenue? As the tax rate rises, the "deadweight loss" (real loss to the economy rises) so as the rate gets close to maximizing revenue the loss to the economy exceeds the gain in revenue.... I dislike budget deficits as much as anyone else. But would I really want to give up say $1 billion of GDP in order to reduce the deficit by $100 million? No. National income is a goal in itself. That is what drives consumption and our standard of living."