Tuesday, November 30, 2010
Hauser's Law
What the chart at the linked post shows is that governments cannot increase revenue by raising taxes. Taxes seem to peak at about 16-20% of GDP, whatever that figure might be. If the government jukes taxes above this point, economic activity simply adjusts to compensate--people either pull their money out of the economy, or start playing with their sums.
Labels:
economics
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