The Laffer Curve Has the Last Laugh

The Laffer Curve Has the Last Laugh

When Britain’s Labour government took power a year ago, it quickly reverted to class warfare by cutting the annual tax-free deduction for capital gains in half, from $16,600 to $9,000.  It also raised capital gains tax rates to between 18% and 32% – up from a band of between 10% and 28%. The first returns are in and the tax hike has predictably backfired big time. Receipts from capital gains taxes are down 18%, with indications that future reven…