http://wonkroom.thinkprogress.org/2008/04/16/gibson-debate/ Thu, 26 Nov 2009 16:42:01 -0500 http://wordpress.org/?v=2.8.5 hourly 1 http://wonkroom.thinkprogress.org/2008/04/16/gibson-debate/comment-page-1/#comment-676 JMOHR Thu, 17 Apr 2008 14:55:28 +0000 http://thinkprogress.org/wonkroom/2008/04/16/gibson-debate/#comment-676 No one seems to understand the Laffer curve. It suggests that at some point between a tax rate of 0% and 100% there is a rate that maximizes investment and tax revenues. Gibson notes the surge in capital gains taxes when the marginal rate is lowered, ie profit taking by investors given the new tax rate. Long term investment rates would remain the same over time. What else are people going to do with their excess funds? They will be invested in bonds or in stock which will be used in turn to invest. What have we seen of corporate investment? During the hay days of the great Bush economic boom, corporations merely retained earnings to highest level in recent years. We saw the off shoring of profits and jobs overseas thereby harming the long term soundness of the US economy and tax revenues. No one seems to understand the Laffer curve. It suggests that at some point between a tax rate of 0% and 100% there is a rate that maximizes investment and tax revenues. Gibson notes the surge in capital gains taxes when the marginal rate is lowered, ie profit taking by investors given the new tax rate. Long term investment rates would remain the same over time. What else are people going to do with their excess funds? They will be invested in bonds or in stock which will be used in turn to invest. What have we seen of corporate investment? During the hay days of the great Bush economic boom, corporations merely retained earnings to highest level in recent years. We saw the off shoring of profits and jobs overseas thereby harming the long term soundness of the US economy and tax revenues.

]]> http://wonkroom.thinkprogress.org/2008/04/16/gibson-debate/comment-page-1/#comment-670 christopher wiwi Thu, 17 Apr 2008 04:05:15 +0000 http://thinkprogress.org/wonkroom/2008/04/16/gibson-debate/#comment-670 Because Charlie has the Reich wispering in his ear piece. Because Charlie has the Reich wispering in his ear piece.

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