Saturday, November 23, 2013

Kennedy's One Contribution: He Proved The Laffer Curve

SEE HERE  I suppose that there are lots of folks who don't know what the Laffer Curve is.  Basically the Laffer Curve is a way of expressing the point that increasing taxation doesn't always increase tax revenue because increased taxation disincentivizes production especially those at the highest marginal rates.  Why bother to work at all if the government is just going to take it all?  Arthur Laffer made that point with a curve that shows that tax revenue increased with increasing rates until some critical rate was reached at which point the revenue actually decreased because the disincentives became higher than the added incentive of more income and then the tax shrank the economy and the resulting tax revenue.  It's just common sense but liberals go nuts at the idea.  Kennedy's tax cut proved it however.  That was a real contribution! ... almost Kennedy's only real contribution. 

Some people claim the space race was a contribution but I doubt it.  More space related programs were cancelled because of Kennedy than aided and turning space technology into a race meant that it was a show and when the show was over so was the investment in space in large part.  Thanks Kennedy ... sorry you were assassinated but you're were just another politician.

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