Laffer Curve...

Have you ever heard of the Laffer Curve? I hadn't until several months ago. It's a little like the Bell Curve for grading in school, but this is for determining the optimal tax rate in an economy.

The Laffer Curve basically says that at 0 percent taxation the government gets $0 dollars in revenue, and at 100 percent taxation the government gets $0 dollars in revenue. At 100 percent taxation there is no incentive for people to earn money. Instead bartering and other means of trade take the place of cash transactions.

Based on those assumptions, there has to be a tax rate in between that keeps the people happy while generating the revenue government needs to function.

When Ronald Reagan took over after jimmy carter almost drove our economy into the ground, he used the Laffer Curve, in part, as a basis for dropping the highest marginal tax rate from 70 percent to 31 percent. It resulted in a massive increase in revenue to the federal government. Of course, congress continued to spend every single nickle that came in, and then some, so no surplus was ever attained.

It's hard to believe that taxing people LESS brings in MORE money, but it works. That isn't always the case, but historically in this Country it is very effective.

obama and his gang of thugs think that taxation is the key to solving our financial crisis. It isn't. Cutting spending is the first step. Reducing the size and influence of government is also a good step. Businesses have to have some freedom in order to be innovative. Innovation leads businesses to employ more people, more people paying a lower tax rate increases revenue to the government.

obama also talks constantly about the evil rich people. They don't pay their fair share. There are three points I would like to make about that.
1. The top 1 percent of wage earners in this Country pay 40 percent of the tax burden. Compare that to the bottom 45 percent who pay no taxes at all. Who is actually carrying the burden?

2. Rich people in this Country employ millions of people. The small business is the backbone of this Country. We are losing small businesses every day to uncertainty with the economy, over regulation, over taxation and just a general hostile environment created by this administration.

3. Companies and corporations don't pay tax. Sure, they may send money to the federal government, but they offset that money by increasing prices on goods and services or being unable to afford raises and other benefits for their employees.

One last thing, it is not evil for a company to make a profit. Profits mean more research and development which results in better products. It means raises for employees. It means charitable donations. It means putting more money back in to our economy.

obama is bad for our Nation. He is anti-American in every sense of the word. His plot to turn us into a third world nation is dangerous. His underhanded and dirty tactics should not be tolerated. The press in this Country have given him a free pass from the moment he emerged from the chicago slime. Will the press be as forgiving when he comes for them?

For more information on the Laffer Curve, and other examples, visit this link...