The Laffer Curve

Arthur Laffer was an American economist for Ronald Reagan.  He is of the Austrian school of thought on economics and is credited with being a key figure in supply-side economics.


Laffer came up with a theoretical mathematical relationship between the tax rate and government revenue.  Laffer started his theory by saying that the government would collect no revenue if the tax rate was 0%, which is just common sense.  The brilliance of his theory though, comes from the fact that he also theorized that the government would collect no revenue at  a 100% tax rate.  But Eddie! If government revenue is a function of the tax rate, then that means that the relationship can be expressed in the form f(x)=kx making it a linear function whose limit is infinity!  This would hold true in a perfect world, but Laffer realized that at a 100% income tax, any rational person would no longer work because the government would sieze anything they made, making their work useless.  He then postulated that the ideal tax rate must then lay somewhere on the interval (0%,100%).  Notice that this is not inclusive.  Although it the Laffer curve is usually expressed as a parabola with its vertex at x=50%, Laffer believed that the ideal tax rate is most likely significantly lower than this.

The Global Tea Party

The first tea party, led by Samuel Adams, occurred in Boston on December 16, 1773.  It was a protest against unreasonable taxes imposed by a tyrannical government.  This has led to the recent protest movement known as the Tea Party movement.  What the ever leftist media will not tell you however, is that the Tea Party has transformed from an American tradition of  liberty to a global assault on tyranny.

Tea Parties have been taking place all around the world from Italy to the country that started it all: Great Britain.  Karl Marx was right when he foresaw a coming, global, revolution.  His mistake tough, was that this would be a revolution of individualism and classical liberalism.  Not of collectivism and slavery.  We can make Marx roll over in his grave and organize International Tea Party Day!

"When the people fear the government there is tyranny.  When the government fears the people, there is liberty."
-Thomas Jefferson