Smoot–Hawley Tariff Act - Wikipedia
en.wikipedia.org
    • ayyyEnglish
      8·
      3 months ago

      Or we could just fund the IRS since it’s a profit center.

        • ExtantHuman@lemm.eeEnglish
          6·
          3 months ago

          So the cut that went into effect in '83 was passed in '81, just before a recession hit. So the US seeing an increase in revenue compared to the few years before that where unemployment was up over 8% and gdp dropping, is really more about the economy recovering than tax policy changes.

        • HubertManne@piefed.socialEnglish
          6·
          3 months ago

          proven likely true means not proven true. Way to many factors. I personally thing the theory has a sorta merit but is very limited and vague (in the sense of there is no identification of where the exact sweet spot of taxation levels are). For example the punitive measures for not paying taxes at very high levels need to be very severe to curtail such behavior. So five figure owning person or mom and pop shop you give a slap on the wrist. Maybe 10% of owed added. Wealthiest individuals and companies get knocked completely out of their level so like 500% of what was owed.

            • HubertManne@piefed.socialEnglish
              7·
              3 months ago

              I would not even say it worked once in 83. Lower rates are one possible reason but like anything with the economy there are plenty of factors including cyclical changes that could explain it.

                • HubertManne@piefed.socialEnglish
                  3·
                  3 months ago

                  I mean that sounds more like a tax haven situation. Honestly to stop that I think countries should require companies meet their tax rate globally where they can deduct what they pay elsewhere.

    • humanspiral@lemmy.caEnglish
      2·
      3 months ago

      Laffer curve in political practice is BS. It is proven that you raise 0 revenue at 100% tax rate because no one is actually paid to work, then. The political distortion is “therefore, always lower taxes for more revenue”.