Yesterday I made a comment on Facebook and Twitter that "Mickelson Shrugged." I was referring to Phil's thinking aloud about how he would respond to the new tax rates in his home state of California that are aimed at guys like him and his family.
Some are now reporting that he is sorry he spilled the beans on his ruminations. Notwithstanding that possible regret on going public before he decided what, if anything, to do, he is now the focus point for discussions on the "Laffer Curve."
Despite what some people say, the "Laffer Curve" merely explains that humans respond to different tax rates in ways that aren't always the same as those imposing the taxes have anticipated. It's a simple concept that nevertheless doesn't fit the world view of those who try to advance the idea that small groups of elite people who have political power should be in charge of the wealth created by others. That group has had much success in convincing economic illiterates that the "Curve" is something else.
In the interest of clarity, here is a look at what might happen to states like California now that they have convinced many people to vote for the immoral proposition that tax rates for some high earners should be higher to allow people like themselves to pay at a lower rate. Of course the explanation comes to us from Dan Mitchell at International Liberty where many economic lessons are explained in a way that almost anyone can understand.
Many of you may already visit that site on a regular basis so you might wonder why I keep touting it and Dan's great work. The reason is that this site is visited daily by many people who are not regular readers and who land on this site for all kinds of reasons. They hail from all over the globe. It is my hope that those of them who have a taste for freedom will also be exposed to the explanations of why, despite any shortcomings it may have, freedom is the best path to a better society.
To sum it up, I'll paraphrase the caption of a recent cartoon about new businesses in the Golden State.
If someone wants to escape the discrimination inherent with the new taxes on high incomes in California there are several routes they can take. But all of them lead out of California.