The Laffer Curve strikes again

As someone who majored in political science, it is a little disconcerting to realize I have no idea what is meant by that term.  The word science in that term would imply to me an analysis of historical causes and effects (experimentation and result analysis) of political and economic actions to determine which policies work best.  I remember reading some Plato and Nietzsche for my degree, and that’s about it.  And now I’m getting off topic.  This isn’t a post about college education.

One idea that I have consistently seen proven time and again is that when you raise the income tax rate, tax revenues go down.  That seems to be a solid theory, bordering on becoming a scientific law.  (Of course, I didn’t study that in any poly sci course, nor did I hear of Art Laffer and his curve until after graduation.)  As another little experiment with this idea, the U.K. implemented a new, higher tax rate, and shockingly, revenues just dropped

Now, if political science were an accurate appellation, then reducing tax rates would be a solid theory, advocated by all who want to increase government revenues.  I know there has to be a sweet spot, where if tax rates went below it, tax revenues would also decrease.  But I can’t think of a country in the developed world where tax rates are too low on the Laffer Curve to optimize government revenues.   But all you continually hear from government types is yammering about raising taxes on “the rich.”  Proven results are completely ignored.

Science has no place in “political science.”  It’s just all politics. 

I wish I had gone for another degree.

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