The following is from an email from the Committee to Unleash Prosperity. A number of great economic names including Art Laffer and Stephen Moore are involved in that organization, but the chart below specifically addresses federal tax rates and revenues for “The 1%” when the Trump tax cuts took effect.
It highlights how reducing federal tax rates for the very highest earners can actually result in higher revenues. This implies that for simple revenue maximization (Laffer Curve) the federal government should probably reduce tax rates for the highest earners.
It also highlights how short-sighted New Mexico policymakers are (both Gov. Lujan Grisham AND the Democrats who control the Legislature. While not all tax reductions will result in MORE taxes paid, the fact is that reducing taxes can spur economic growth and diversification. We don’t need to look too hard for examples of that in New Mexico. The Richardson tax cuts were a home grown pro-growth success story, just ask Jennifer Rubin.