Author Topic: Kansas Abandons Conservative Tax Cuts  (Read 529 times)

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Re: Kansas Abandons Conservative Tax Cuts
« Reply #15 on: September 21, 2017, 05:16:10 PM »

Offline Vermont Green

  • Ray Allen
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I would be for reducing the Corporate rate so long as there was a corresponding simplification to go along with it.  There are too many loop holes.  Companies should be able to retain earnings without getting gouged but with all the loop holes, that rarely happens.  You get around it by paying dividends, bonuses, all sorts of things.  Capital gains is another piece of the puzzle (hedge fund loop hole).

Re: Kansas Abandons Conservative Tax Cuts
« Reply #16 on: September 21, 2017, 05:27:10 PM »

Online nickagneta

  • Bill Russell
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Tax rates don't operate within a vacuum. You have to consider spending, deficit, economic growth etc. It's all a balance. I don't know why we are always so focused on taxes as if we assume everything else is perfectly aligned and we just need to fix taxes. We probably need to adjust everything to achieve any sort of balance. And then you have disagreements on which sort of balance should be achieved...
Bingo, which is why the oversimplistic laffer curve, which is just a half circle/oval, is rather laughable. The amount of variables that need to be add to such an equation is staggering which would create a graph that could have many hills and valleys in it between the 0% and 100% endpoints.

Re: Kansas Abandons Conservative Tax Cuts
« Reply #17 on: September 21, 2017, 05:34:05 PM »

Offline saltlover

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Tax rates don't operate within a vacuum. You have to consider spending, deficit, economic growth etc. It's all a balance. I don't know why we are always so focused on taxes as if we assume everything else is perfectly aligned and we just need to fix taxes. We probably need to adjust everything to achieve any sort of balance. And then you have disagreements on which sort of balance should be achieved...
Bingo, which is why the oversimplistic laffer curve, which is just a half circle/oval, is rather laughable. The amount of variables that need to be add to such an equation is staggering which would create a graph that could have many hills and valleys in it between the 0% and 100% endpoints.

Want to clarify I totally agree that the Laffer Curve is oversimplistic.  Just wanted to get it into the discussion because it is a primary economic argument for tax policy on one side of the debate, so it should at least be understood, flaws and all (or especially its flaws).  And it was especially relevant given that Kansas relied on Laffer's advice.

Re: Kansas Abandons Conservative Tax Cuts
« Reply #18 on: September 21, 2017, 05:48:01 PM »

Online nickagneta

  • Bill Russell
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Tax rates don't operate within a vacuum. You have to consider spending, deficit, economic growth etc. It's all a balance. I don't know why we are always so focused on taxes as if we assume everything else is perfectly aligned and we just need to fix taxes. We probably need to adjust everything to achieve any sort of balance. And then you have disagreements on which sort of balance should be achieved...
Bingo, which is why the oversimplistic laffer curve, which is just a half circle/oval, is rather laughable. The amount of variables that need to be add to such an equation is staggering which would create a graph that could have many hills and valleys in it between the 0% and 100% endpoints.

Want to clarify I totally agree that the Laffer Curve is oversimplistic.  Just wanted to get it into the discussion because it is a primary economic argument for tax policy on one side of the debate, so it should at least be understood, flaws and all (or especially its flaws).  And it was especially relevant given that Kansas relied on Laffer's advice.
Oh I knew you were just bringing it into the convo to describe how a group of people think. There's no way I would believe that you, salty, thought it was true or had much relevance. TP