No. of Recommendations: 4
It would have a devastating effect on people's marginal utility for income rather than leisure - and drive most of the economy into the black market - unless we returned to the more permissive definitions of what constituted taxable income and deductions that existed back when marginal tax rates for the highest brackets were that high.
But tax cuts - according to the premise of your first post - have devastating, deficit ballooning, horrible bad effects on things, right? So why not just have the government just take all the money and decide what to do with it?
Clearly that wouldn't work.
Or - maybe we'd like to acknowledge that there's an equilibrium point, a local optimum that exists? Which is what the Laffer curve is really all about.
