AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
3min snip
#154 Dr. Art Laffer: We Are In The Middle Of A Massive Redistribution Revolution And It's Destroying Growth
The Julia La Roche Show
Exploring the Dynamics of Tax Rates and Revenue Generation (Laffer Curve)
Tax rates have two effects on revenues: the arithmetic effect where higher rates result in more revenue from the same tax base, and the economic effect where higher rates lead to a smaller tax base due to reduced incentives. These effects work in opposite directions. The Laffer curve illustrates this dynamic, showing that at 0% and 100% tax rates, revenue is zero. As tax rates decrease from 100% to 0%, revenue increases, albeit at a slower rate. The curve demonstrates the optimal tax rate for maximum revenue. Tax rates should never be raised when revenues are declining, as it would harm everyone and result in less revenue.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode