Arcangl86
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- Dec 29, 2013
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The original argument was that the higher the tax rates, the more likely tax avoidance was. That was Laffer's argument at least. The new one is to make it seem less self serving.I think the usual argument is that if you raise the tax rates so high that those with resources don't want to invest them to get more profit then there are fewer jobs, and productivity goes down overall.
Also, some move to lower taxed areas or countries. For instance, some leave California due to high tax rates, resulting in the loss of that person's taxes.
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