Taxes Have Consequences

An Income Tax History of the United States

By: Arthur B. Laffer PhD, Brian Domitrovic PhD, Jeanne Cairns Sinquefield PhD

Narrated by: Rick Adamson

The definitive history of the effect of the income tax on the economy.

Ever since 1913, when the United States first imposed the income tax via constitutional amendment, the top rate of that tax has determined the fate of the American economy. When the top rate has been high, as in the late 1910s, the 1930s, 1940s, 1950s, and 1970s, the response of those with money and capital has been to curtail real economic activity in favor of protecting assets and income streams. Huge declines have come to the economy in these circumstances. The most brutal example was the Great Depression itself. When the top tax rate has been cut and held at reduced levels—as in the 1920s, the 1960s, in the long boom of the 1980s and 1990s, and briefly in the late 2010s—astonishing reversals have occurred. The rich have brought their money out of hiding and put it to work in the economy. The huge swings in the American economy since 1913 have had an inverse relationship to income tax rates.

©2022 Arthur B. Laffer, PhD, Brian Domitrovic, PhD, and Jeanne Cairns Sinquefield, PhD (P)2022 Kalorama

Must Read For Supply Side Economics

Art Laffer is done it again as he is clearly articulated the need for supply side economics and to continually use and review the Laffer curve in policy making. Taxation ultimately hurts the economy as clearly demonstrated.

Educational

A great educational book. Understand how they use taxes for and against us. You need to read this book to look at the history of taxes.

Informative

Author does a great job putting the tax cuts in historical perspective and points out good and bad decisions and their impact of both Republican and Democrat administrations. He dispels myths of WWII ending the Depression, and a number of interesting facts. Including the competitive nature of taxation federally and the states. Fascinating book, worth the read.

Cognitive Dissonance Documented

Who can believe it -- lower tax rates bring in more revenues, but case after case for a century of evidence, from Coolidge to Trump, show us that human nature is the missing element in the math of tax receipts. The rich have the means and motivation to delay, defer, or expatriate their income or wealth when it is overly penalized. That seems hard to admit, but it's like any other kind of science denial. Look at the evidence and then show me your response, Big Spenders.

Thorough history of taxes over time

This book can get a little academic at times, but is a very thorough and interesting history of tax rates and their effects on the economy over the last 100+ years.