Monday, May 17, 2010

Hauser's Law

Good to see Hauser's Law getting more attention in today's WSJ. WAY more people need to know about this. I wrote a piece on it called, Some Musings on Taxation," which you can find in the archives from last July. In a nutshell, no matter what tax rates are, the government only collects about 19-20% of GDP in tax revenue. The consistency is remarkable:

It's as if American society has decided collectively that 20% is the right number. Interestingly, when polls ask what percentage people think is fair, 20% is also the most common response.

What this means is that one should lower tax rates, not increase them. But, of course, we are hurtling in the opposite direction...

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