Someone please correct me if I'm wrong but I don't think "Thanks for your thoughts." is really an answer to any question.
Zach, I know you're not Sen. Prentice but the question was really directed at anyone in Olympia who thinks raising taxes, regardless of whether it's "fair" or not, is good fiscal policy. I encourage you to read a little bit about something called the Laffer curve. And if you give me a real answer to my question. I'll be happy to post it here.
Posted by MarkGriswold at March 10, 2010 10:48 AM | Email ThisOh, and the Laffer curve is a theoretical concept that is not relevant at current or proposed tax levels. There are other reasons why raising taxes is undesirable (though many of us believe the alternatives are even worse), but the Laffer curve isn't one of them. It's Kool-Aid for people whose ideological fervor exceeds their math skills and common sense.
Posted by: Bruce on March 10, 2010 12:15 PMAs for reason 1, if he didn't think it was addressed to him then why did he bother to respond at all except to be a cheeky bastard?
Reason number 2 I'll give you but, hey, propose a loaded piece of legislation, get a loaded question.
Reason number 3 and your understanding of the Laffer curve indicates that you never passed ECON 101 and choose to drink all the Kool-Aid that liberal "economists" choose to pour in your mouth.
Posted by: Mark Griswold on March 10, 2010 02:02 PMA parabola is a closed curve. Note that as tax rates steadily INCREASE, so does government revenue. Its only once the peak of the parabola is passed that revenue declines.
So, to simplify this further: We are currently taxed below the peak on the graph. Government revenues are not nearly as high as they should be, to meet the needs of our expanding population.
Thus, we have room to raise taxes..a little. If we raise them too much, then yes, revenues will decline. Currently, we have some of the lowest state taxes in the nation. The right-wing paradise of Idaho has not only a state 6% sales tax (slightly below ours) but also a 7.8% income tax. And their governer had the chutzpah to call Washington out on high taxes? PLEASE!
Anyway...sounds like we know what we're doing. According to Forbes, we are #2 in the nation for "Best States for Business" and #1 for growth. I've never understood what all the complaining is about on this site?
Posted by: Proteus on March 10, 2010 03:21 PMA parabola is a closed curve. Note that as tax rates steadily INCREASE, so does government revenue. Its only once the peak of the parabola is passed that revenue declines.
So, to simplify this further: We are currently taxed below the peak on the graph. Government revenues are not nearly as high as they should be, to meet the needs of our expanding population.
Thus, we have room to raise taxes..a little. If we raise them too much, then yes, revenues will decline. Currently, we have some of the lowest state taxes in the nation. The right-wing paradise of Idaho has not only a state 6% sales tax (slightly below ours) but also a 7.8% income tax. And their governer had the chutzpah to call Washington out on high taxes? PLEASE!
Anyway...sounds like we know what we're doing. According to Forbes, we are #2 in the nation for "Best States for Business" and #1 for growth. I've never understood what all the complaining is about on this site?
Posted by: Proteus on March 10, 2010 03:22 PMMaybe he didn't respond because your message implies something that isnt' true: Senator Prentice is not the force behind the income tax - and is not pushing it or advocating for a vote on it.
The bill is Rosa Franklin's, but it's Lisa Brown's effort. And anything this big that is introduced at the very end of session is not intended to pass. If they wanted an income tax, they would've prepped it in the interim and dropped it right away.
This was either a smokescreen or a test balloon. Either way it was not Senator Prentice's bill or cause.
Posted by: Starks on March 10, 2010 05:34 PM:-D
Didn't Benjamin Franklin Gates somehow sum up tax policy in a way that you could reference? Or Batman??
Proteus, you make a fair point. We just disagree in that I believe we're on the other side of the curve and you don't. As far as Idaho vs. Washington, just remember that there are many other ways of taxing people than just sales and income tax. There's property tax, B&O tax, county and local taxes, fees and, in the case of the Federal gov't, inflation caused by deficit spending.
As for you, MikeBS, I'd certainly rather have Ben Gates (or Nick Cage for that matter) running this country than the current folks in charge. Same goes for Batman. Seems to me the current leaders are the ones steering us toward an EPIC FAIL. But you go on riding that rainbow unicorn. Just don't come crying to me when the shit hits the fan.
Posted by: Mark Griswold on March 10, 2010 09:40 PM