Source: Adam Smith Institute
by Tim Worstall
“We’d not want to claim this is a proof, rather a tendency. We all know that there is indeed that Laffer Curve, a rate at which tax collection peaks – either higher or lower rates reduce revenues. We, ourselves, think that we should in fact be aiming at the growth maximising rate, something much lower. We’d also insist that, over time, the growth maximising rate is the revenue maximising one. For economic growth works like that. But that does also require a time horizon well past the next election and so is not something that politics is ever going to consider. But, back to Laffer. We suggest that tax rates will rise, given the joy politicians take in spending ever more of our cash, until raising them further will collect no more money to be spent as the politicians desire.” (08/29/26)
https://www.adamsmith.org/blog/most-taxes-end-up-a-shade-over-the-peak-of-the-laffer-curve