The Logic Behind Trickle-down Economics: The Laffer Curve Why do - TopicsExpress

The Logic Behind Trickle-down Economics: The Laffer Curve Why do trickle-down economists think that taxing the wealthy less leads to an increase in production? That can be explained in terms of tax revenue. Some argue that giving tax breaks to the wealthy can actually increase tax revenue for a government. This might seem difficult to believe, but Arthur Laffer argued otherwise. Working off ideas posed by 14th-century Muslim philosopher Ibn Khaldun and John Maynard Keynes, Laffer concluded that government tax rates and revenues dont have a directly positive correlation. money.howstuffworks/trickle-down-economics2.htm

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