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Proof-Variation7005 t1_j4va6il wrote

Reply to comment by degggendorf in State of the State address by FlashbackBob

I like it. Hell, we can just copy MA and make groceries tax free outright.

For normal purchases, I’d just go to whatever that Laffer curve number is for the ideal rate. I wanna say it’s around 6.5% or something

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degggendorf t1_j4ve25i wrote

> copy MA and make groceries tax free outright.

Food is already tax-free in RI. I am suggesting re-adding sales tax to the not-a-staple foods like aren't SNAP eligible.

> I’d just go to whatever that Laffer curve number is for the ideal rate

That's a new term to me, thanks for bringing it up. Reading about it now though, it seems limited. There is more to taxation than raw receipts, and requiring a single rate seems unnecessary. We could exceed the Laffer ideal if we tax different things at different rates, as well as achieve broader societal goals if we tax the poor less than the wealthy, and encourage eating celery over frozen pizza.

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therealDrA t1_j4vxfq7 wrote

The Laffer curve was debunked 40 years ago. Laffer was a hack economist that was part of the Reagan trickle down squad.

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Proof-Variation7005 t1_j4xsw7s wrote

For other taxes, sure. It’s bullshit. For sales tax, there’s definitely truth to it. There’s a point where the rate gets high enough where revenue will start to drop as consumer habits evolve. This is especially true when 99% could easily go to one of two other states to make purchases.

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therealDrA t1_j4xyoq8 wrote

But for the current example I don't think the laffer curve is in play.

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