Reply to post: Re: The Laughing Curve?

Pumping billions into data centres won't guarantee you an empire

Tim Worstal

Re: The Laughing Curve?

That's a fascinating statement.

Diamond and Saez.

That's Peter Diamond (Nobel Laureate) and Emmanuel Saez (Likely future Nobel, John Bates Clarke Gold Medal he's already got, sometime collaborator with Piketty) and in that paper they calculate the peak of the Laffer Curve (for both income and capital taxation) for the US economy.

Which is a pretty odd thing for serious economists to do over something that no serious economist considers to be a valid thing.

Might I gently suggest that you might want to revisit your preconceptions in this area?

We could also look into the EU's report into the financial transactions tax (aka Robin Hood Tax). Where they show that the FTT would lower the size of the economy as compared to a future without the tax. To such an extent that total tax revenue would be lower than in the absence of the FTT. Which is exactly what the Laffer contention is: lower tax rates can, sometimes, lead to more revenue.

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