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The Poor are Harmed the Most by the Effects of the Laffer Curve

4/13/2014

 
For the most part, the poor are less educated, less experienced, and have less access to capital.  These three factors are crucial in creating a comparative advantage over others, thus making the poor’s comparative advantage much smaller.  The more significant the comparative advantage, the longer you can overcome increasing tax rates.
​The Laffer Curve
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A business owner who has proven to create wealth, not just for themselves but also for all the people whom they hire and purchase products from, are too often discouraged from expanding or starting a business because of high tax rates.  Many of these successful businessmen have already acquired wealth and can have a good lifestyle without working.  Higher tax rates discourage businessmen from benefitting all of his would-be employees. 
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Supply and Demand
An ever-growing tax rate continues to discourage businessmen from starting businesses and employing people.  Having a decreasing level of jobs and a steady increase of the number of people needing to work drives down wages when people offer their labor services for less so as not to be out of a job.  It is also correct to state that 100% of the taxes are paid by consumers; thus, the consumers pay all business taxes.  Perhaps, the greatest tax is the loss of services and products by businesses not started.     
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4/27/2016 09:46:41 pm

The holy about the human being is totally dependent on the capital as well. Because without capital the human being cannot survive our self as well in our society. We should avail other opportunities as well.

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5/5/2016 04:19:36 pm

These exercises can also be done at your abode whilst you cook, clean, or do the laundry


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