Advocates promised the new tax would bring in over $1 billion a year in new revenue. And they quickly saw their predictions surpassed: the state Department of Revenue estimates it will generate over $1.5 billion this fiscal year.
Tax rates that reduce revenue are far, far greater than any current tax rate in the US, not that rates should be set to optimize revenue. People that try to use the Laffer curve as justification for reducing taxes in the US lack both practical and theoretical understanding of taxes.
So when you asked “What’s going to happen if tax rate increases keep decreasing revenue?” you were referring to something that doesn’t involve revenue? And that doesn’t have to do with income tax? In a conversation about income tax? That’s even worse.
Tax rates that reduce revenue are far, far greater than any current tax rate in the US, not that rates should be set to optimize revenue. People that try to use the Laffer curve as justification for reducing taxes in the US lack both practical and theoretical understanding of taxes.
I was referring to this, not the laffer graph
So when you asked “What’s going to happen if tax rate increases keep decreasing revenue?” you were referring to something that doesn’t involve revenue? And that doesn’t have to do with income tax? In a conversation about income tax? That’s even worse.
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