Laffer Curve and Austrians

From: Y
Sent: Tuesday, April 10, 2018 5:44 PM
Subject: Laffer Curve
Hi Professor Block, what is the Austrian Economics position on the laffer curve which is taken to illustrate there exists a taxation rate where revenue is maximized. Some mainstream economists claim the empirical evidence shows that tax rate is 33%. If we take it that only voluntary interactions tend toward pareto optimality from welfare economics is the laffer curve ignoring the utility derived from leisure. What other considerations is the laffer curve ignoring when it comes to taxes. Thanks

Dear Y: I don’t know about and Austrian position on the Laffer Curve. Corralling us is like herding cats. Here are my two publications on this subject. I hope and trust they will be of help to you.

Barnett, William II and Walter E. Block. 2005. “On the Use and Misuse of the Laffer Curve” Journal of Public Finance and Public Choice, Vol. XXIV, No. 3, pp. 139-152;; cited in Felipe Lorain B and Jeffrey B. Sachs. 2017. Macroeconomica, en la economia global. Tercera edition. Santiago de Chile, Pearson Education de Chile. Isbn 978-956-343- 507-8, p. 545

Block, Walter E. 2010. “Is there an ‘anomalous’ section of the Laffer curve?” Libertarian Papers, Vol. 2, No. 6, pp. 1-11;;;; reprinted in Mises: Revista Interdisciplinar de Filosofia, Direito e Economia. 2013, Vol. 1, No. 1, January-June, pp. 173-180


5:03 pm on April 20, 2018