Hauser's Law at Anti Republican Culture: Why the Numbers are so Big

by the Left Coast Rebel

Howard Towt over at Anti-Republican Culture wrote up an excellent economic piece recently, the following is an excerpt:

R. David Ranson, President and Director of Research for H.C. Wainwright & Co. Economics Inc. recently (May 17, 2010) had a Wall Street Journal opinion piece on Hauser’s Law.

It’s a graph showing that federal revenue from taxes in the United States (vertical axis) has never exceeded 20% of GDP (horizontal axis) since World War II. It dramatically points out that there is an upper limit to the amount a government can tax its people.

Consider the impact: Ever since the Federal Reserve has been managing the money supply, there has never been an instance when our government was able to extract more than 20% of GDP (Gross Domestic Product) from taxpayers. That’s almost 100 years, in periods of inflation/deflation, high/low marginal tax rates, peacetime and war. It is an “Economic Law.”

Be sure to read the rest.

1 comment:

  1. That law is about to change should this administration continue on it's course, even though the consequences won't.


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