Tuesday, January 10, 2012

Fog explains tax cuts

Fog, whose real name is Rob, explains how tax cuts work.

ECON 102: Taxes. Tax receipts are a non-linear, inverse function of tax rates. I.e., when rates are cut, economic activity is stimulated and tax receipts increase.

Corollary: Economic activity is NOT a zero-sum game. I.e., the rich are not getting rich at the expense of the poor.

And then he ponders. Why must the liberals continue to blame the rich?



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