The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM
Iran's Sham Election In Houston.
June 20, 2005 5:36 AM
Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM
Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM
Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM
Idea Majorities Matter.
May 12, 2006 6:15 PM
Twilight Zone Economics.
Oct. 17, 2006 12:30 AM
The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM
From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM
Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM
Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM
Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM
Unions Antithetical to Liberty.
May 28, 2008 11:12 PM
Right To Work States Rock.
June 9, 2008 12:25 PM
Social Security Reform Thursday.
March 13, 2008
Caption Contest: Enter Today!
Due: July 29, 2008
The Carnival Of Classiness.
Mar. 14, 2006
Quotational Therapy: Obama.
Apr. 4, 2008
Mainstream Melee: Wolfowitz.
May 19, 2007
Pundit Roundtable: Leaks.
July 9, 2006
A WILLisms.com(ic), by Ken McCracken
July 14, 2006
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Trivia Tidbit Of The Day: Part 226 -- Higher Taxes, Weaker Government Revenues.
Higher corporate tax rate : Relatively less taxes collected from corporations :: Lower corporate tax rate : Relatively more taxes collected from corporations-
Need to raise money for entitlement programs, schools, national defense, and roads?
Just raise taxes, right? Wrong.
This concept will not surprise those who read WILLisms.com regularly, but the act of raising taxes is almost always a mere short-term fix. Higher taxes consistently drive down tax receipts in the medium-term and long-term.
When an additional unit of work (an hour, or day, or whatever) or output is taxed exorbitantly, it may not make much sense to do additional work or create output. High taxes also encourage creative accounting (usually totally legit) to avoid paying Uncle Sam.
Higher taxes also stifle economic growth. Lower economic growth means less commerce, less earning, less production. Ergo, lower levels of tax collections.
Interestingly, countries with higher corporate tax rates derive less of their overall tax receipts from those higher corporate taxes. Counterintuitively (for some), countries with lower corporate tax rates derive a greater share of their overall tax receipts from those lower corporate taxes.
Indeed, the Tax Foundation has the data (.pdf):
With the highest overall corporate rate in the OECD in 2005 (third highest in 2003), one would expect the U.S. to be collecting comparatively high corporate tax revenues and to be heavily dependent on them. This is not the case. In fact, during 2003 he U.S. ranked 15th in the OECD in corporate taxes collected as a percentage of total taxes collected.
When will this stuff stop being so surprising and counterintuitive?
Previous Trivia Tidbit: Thanksgiving Factoids.
Posted by Will Franklin · 25 November 2005 11:00 AM