Thursday, September 17, 2009

Where are we on the Laffer curve?

From the abstract:

For benchmark parameters, we find that the US can increase tax revenues by 30% by raising labor taxes and 6% by raising capital income taxes. For the EU-14 we obtain 8% and 1%. Denmark and Sweden are on the wrong side of the Laffer curve for capital income taxation.


Via Matt Yglesias.

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