Sam Seder / Majority Report
Many conservatives believe that if you lower taxes on the wealthy, tax revenue will go up – a core belief of “Reaganomics.” Majority Report’s Sam Seder discusses “Reaganomics” with a caller.
Who is Arthur Laffer?
Wikipedia: “Arthur Betz Laffer (/ˈlæfər/; born August 14, 1940) is an American economist who first gained prominence during the Reagan administration as a member of Reagan’s Economic Policy Advisory Board (1981–89). Laffer is best known for the Laffer curve, an illustration of the theory that there exists some tax rate between 0% and 100% that will result in maximum tax revenue for governments.”
What is the “marginal tax rate?”
The marginal tax rate is the tax rate above a certain dollar amount earned. For example if there is a marginal tax rate of 90% at 4 million dollars per year, that means that every dollar starting at 4 million dollars would be taxed at 90%. So, if you made 5 million dollars, only 1 million would be taxed at 90%. Everything below 4 million is taxed at a different amount.
Wikipedia: “Thus, the marginal tax rate is the tax percentage on the last dollar earned. In the United States in 2013, for example, the highest marginal tax rate was 39.6%, applying to earnings over $400,000. Earnings under $400,000 that year had a lower tax rate of 33% or less.”
You can calculate “marginal tax rates” at Money Chimp here.