The expected ripostes have begun to trickle in from our inaugural post — especially from my favorite aggregation site, Disinfo.com. I anticipate quite a number of challenges to the self-evident notion that 1-1=0 from the Korporate Kabbalist crowd. So I thought I’d actually give a name to the series of posts I expect to file answering them, “The Fail Files” — reflecting the laughable durabilty of such a stupid notion as the Laffer Curve.
Okay, so here’s the first two questions I choose to answer*
1. Q: “But won’t our corporate masters simply pass their taxes on to us in the form of higher prices?”
A: Not statistically likely. There is an extremely weak correlation between increases in corporate income tax and inflation as measured by the Consumer Price Index–less than 3%, in fact. Which is within the typical margin of error for a coin flip. … Read the rest