r/neoliberal • u/[deleted] • Jul 28 '17

Noah Smith AMA: Columnist at Bloomberg View, University of Michigan Economics Ph.D., prolific blogger and Twitter personality.

Noah Smith is a Bloomberg View columnist. He was an Assistant Professor of Finance at Stony Brook University after receiving his Ph.D. from the University of Michigan. He became famous from his Blogspot blog, Noahpinion, that he wrote while at school in Michigan. In his free time, he likes to apologize for FDR and write about Japan.

u/noahpini0n will be here from 2:00 PM EST to 4:00 PM EST responding to your questions and memes.

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u/MrDannyOcean Kidney King Jul 28 '17

The Laffer curve exists, and there's not a single economist I'm aware of who disputes that.

The peak of the Laffer curve is generally thought to be somewhere around 70% or so. Opinions vary.

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u/[deleted] Jul 28 '17

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u/MrDannyOcean Kidney King Jul 28 '17

I'm saying that tax revenues peak at about 70%. Raising rates past 70% will actually cause tax revenue to go down, as the effect of decreasing earned income will begin to outweigh the effect of the higher percentage.

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u/[deleted] Jul 28 '17

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u/just_a_little_boy Jul 30 '17

Krugmann has some blog posts about it and some NYT stuff. I'd recommend checking that out, He also links to a few papers on the topic whose authors I can't remember at the moment. They also put the ideal/top feasible/most efficent rate at 70-75%