Laffer Curve Most politicians think that simply raising tax rates will produce more Revenue. But, this simply is not always true. As taxes rates increase people are less likely to buy and at a critical point the actual revenues decrease - the purchases fall off faster than the tax rate increases. This is know as the Laffer Curve.
This chart is an example where a product sells for $10. It produces the most revenue (red o) at a tax rate of 20%. At lower tax rates the quantity sold (blue line) is higher, and at higher tax rates the quantity sold is lower, but either way produces LESS Tax Revenue (red line).
Does the “Interstate Commerce” Clause Authorize Congress to FORCE Us to Buy Health Insurance? You may remember that Chief Justice Roberts said Obamacare was a TAX, after the Govt. argued it was NOT as Tax! The Constitution, says, “The Congress shall have Power…To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;” If you look up the meaning of these words in 1787 you find that “Commerce” is the buying and selling of goods, and “Regulate” meant “to make regular - consistent” - It did not mean to prohibit, force or dictate conformity. In The Federalist Papers, written by Alexander Hamilton, James Madison, and John Jay, they said that the purposes of the “interstate commerce” clause are: (1) to prohibit the States from imposing tolls and tariffs on articles of import and export - goods & commodities - merchandize - as they are transported through the States for purposes of buying and selling; and (2) to permit the federal government to impose duties on imports and exports, both inland and abroad. But, 150 years later CORRUPTION took over the minds of the Supreme Court. The Justices realized THEY were the Foxes that had TAKEN OVER guarding the Hen-house. They could TAKE any Powers they wanted. So, in Wickard v. Filburn (1942), the Court said "the commerce clause” extends to local intrastate activities which 'affect' interstate commerce, even if the activities aren’t “commerce”! The Court also asserted that Congress has the power to regulate prices of commodities and the practices which affect such prices! Thus, if you have tomato plants in your back yard for use solely in your own kitchen, you are “affecting” “interstate commerce” and are subject to regulation by Congress. Our Govt. Is IGNORING the "Original Intent" of the Constitution and TAKING for ITSELF whatever Powers it wants (that means ALL of them!), which has DESTROYED the States and their Sovereignty. Don't you think it's time we should fix this?