Playing the Indian Card

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.

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