Taxes & Free Stuff

I guess these Dems (I mean Socialists) have never heard of Hausers Law.  If you're not familiar with Hausers Law, it was first put forward by investment analyst William Kurt Hauser.

 

What Hauser did was take a historical look at total tax revenues from the end of World War II forward.  Now, one would think that the times when the marginal tax rate was the highest is when we collected the most tax revenues.  After all, the top marginal tax rate has been as low as 28% and as high as 91%

 

This turned out to be, and still is, not the case.  What does happen is that tax revenue collected remains around 20% of GDP regardless of the marginal tax rate.

 

So if we ever really want to increase tax revenue collected it's not done by raising taxes, it's done by improving the economy.

 

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