Readit NewsAm I understanding this correctly?
This: https://en.wikipedia.org/wiki/Laffer_curve
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The assertion that the peak of this curve is skewed towards the left (low tax rates), rather than the right (high rates)?
That is, that if the "job creators" don't keep enough of the margin on goods produced, they will just get pissed off, take their marbles and go home, rather than actually bothering to hire a few more people to grab additional marginal income?
The way the Laffer Curve was usually presented, was to give one the impression that there were marginal tax rates so high that they were somehow greater than 100% and ate into income earned at a lower marginal rate, which would otherwise have been retained had there been less of it.
Thus, "trickle down" being the idea that when the rich have more money, they will for some reason voluntarily use it to hire people to produce products and services, regardless of whether or not there is any actual demand, or anticipated demand, for them.
Yes, a marginal tax rate of 110% would be bad. Good thing we don't do that :-) (I guess I should be ready for some example from 1880 where combined locality through federal taxes did for some specific dollar amount - but hopefully such freaky exceptions don't really exist, or at least often enough to matter)
Edit: I realize that the Laffer Curve was primarily about tax revenues, BUT, a large component of the theory was that as the activity increased to generate the tax revenues, it was due to somebody doing the work that created the additional earnings.
Please note that I do not consider anything from Wikipedia as evidence of anything, so if you are trying to get me to respond to something to do within a Wikipedia article, it just isn't going to happen. The number of times I have discovered serious issues with those articles, especially on political, philosophical, and academic topics is, frankly, disturbing.
There is a theory within some economic schools of thought that savings generates production, but this is not directly to do with tax rates or the Laffer curve, nor even rich people.
Also, laws change all of the time. My impression, every time I dig down with real people, IRL, is they have the same general opinion as you and others like you here, but have no actual exposure to the actual laws, as they implemented. The only occasion I come across this and I see that the business owner, with a small team tax attorneys and CPAs, can't seem to spend enough money to escape huge taxes.
I can only assume that the business owner is clueless and the Internet anons are the experts he should have hired.
And also, perhaps transformed the company ownership structure into a limited partnership as well, claiming a lower market value for the shares owned by limited partners.
tl;dr: First rule of US estate planning: Die broke.
The Hartz reforms suppressed wages and made the average German poorer:
https://ideas.repec.org/a/wej/wldecn/557.html
Germany's industrial success was evident years before they went into effect.
Hartz is like trickle down economics and a lower minimum wage: the wealthy have good reason to love it and the wealthy will make up spurious reasons why you should love it too - which many people will believe.
>A highly educated workforce
China achieved a similar measure of manufacturing success with an education system that was a great deal worse while the UK has an equally good education system and did not achieve anything like Germany's manufacturing prowess.
The difference in the British and German education system probably has more to do with the industrial pressures than it does the nature of the education systems themselves. If the UK followed a similar export-driven path, they would probably have more apprenticeships and fewer people going to Uni to study English lit.
So no, I don't think it's that.
>Inflation-adjusted wages have actually declined in the last ten years making german products even cheaper for other countries. That' terrible for everyone.
Not everyone. German industrialists (like the guy who wrote this article) love lower wages.
Enjoy your kingdom.