ECHOES

"...Your discussion of Curve Two in the August issue recalls the enclosed ancient booklet [also criticizing the Laffer curve for its lack of specific shape]... I have long had a particular objection to the Laffer curve which seems not to have been published. Supposedly, the curve hits the tax rate axis at 100%, the rationale being that with a tax rate that high, there would be no incentive to produce any income and so tax collections would be zero. I suggest, on the contrary, that we could have 100% rates, i.e., all output sequestered by the government, and there would still be incentive to produce something greater than zero so long as there are Siberias and thumbscrews..."