Hollande’s 75% ‘Supertax’ Failure A Blow To Piketty’s Economics

France’s experience with its 75% supertax and declining tax revenues also confirms recent research on the Laffer curve by Federal Reserve Bank of St. Louis and Georgetown economists that estimates the tipping point where higher tax rates cause declining tax revenues begins at a 52% marginal tax rate. Another recent paperby University of Chicago professor Harald Uhlig and Federal Reserve Board of Governors economist Mathias Trabandt estimate this critical tax rate lies somewhere in the 50-65% range for European countries including France.

via Hollande’s 75% ‘Supertax’ Failure A Blow To Piketty’s Economics.

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