Jim Gore of THOR Wealth Management explains why the federal deficit problem is better addressed through reduced spending instead of higher taxes, drawing on historical precedent, the Laffer curve, and Scotland’s recent tax hike as a case study. He also outlines alternative approaches to wealth inequality, including Sarbanes-Oxley reform, corporate tax policy tied to executive pay, and changes to family foundation rules.
Today we have a spending problem which can be seen when looking at relative levels of federal receipts and net outlays as a % of GDP. Raising taxes is short sighted because of the net negative affect due to the hinderance of growth.
JFK understand the power of growing the economy and the negative affect increased taxes can have on that growth.
Here is a chart of the Laffer Curve. This chart and at times the theory can be oversimplistic.
We have seen how raising taxes in Scotland has changed peoples behaviors in a negative fashion.
Setting tax rates should be driven by government revenue produced not social changes.
Jim discuss a few better changes that could positively improve wealth inequality.
