The Laffer Curve illustrates the basic idea that changes in tax rates have two effects on tax revenues: the arithmetic effect and the economic effect.

The linkage between tax rates and public services is, if not non-existent, negative.

I used the so-called Laffer Curve all the time in my classes and with anyone else who would listen to me to illustrate the trade-off between tax rates and tax revenues.

And you can't have a prosperous economy when the government is way overspending, raising tax rates, printing too much money, over regulating and restricting free trade. It just can't be done.

Here's the problem if you keep raising tax rates: You slow down economic growth.

We need to lower marginal tax rates and increase investment.