Liberals and Flat-Earthers

I have many liberal friends.  They are all unique in their own beliefs, with shared interests.  They know that I won't always agree with them, and vice versa.  We're always very tolerant of each other.  The other day I came across an angry liberal.  He had some disparaging remarks about the wealthy.  I noticed that he had been ranting pages and pages of text on Facebook in a fit of pure rage.  I left a quick comment letting him know that I opposed "Robin Hood economics" or taking from the rich and giving to the poor.  He responded, and this quickly escalated into a flame war.

I made the following statement:  "Higher tax rates yield lower tax revenue."  This is a fact that I learned in college, and is something that I have noticed throughout history.  My opponent disagreed.  He said this was a falsehood.  Some leftists claim all Global Warming skeptics are "Flat-Earthers"...  This is the term I'd like to use for this angry liberal.

It's called The Laffer Curve, named after economist Arthur Laffer.  The Laffer Curve shows the relationship between the tax rate and the tax revenue.  It demonstrates that there is an optimal tax rate which yields maximum revenue.  If that tax rate is increased, revenue decreases.  You might notice the similarities with Adam Smith's "invisible hand" theory.  Hardcore liberals, such as the Flat Earther I mentioned earlier, don't believe this is the case.  They believe that when tax rates increase, revenue should increase.

Lets take a look at historical examples:
President Kennedy chopped the marginal tax rate from 91% to 70% in 1964.
The Result:  An 86% rise in individual tax receipts.
President Reagan lowered the tax rate from 70% to 28% during his two terms.
The Result: A 57% rise in individual tax receipts.
President Bush (W.) lowered the tax rate from 39.6% to 35%.
The Result: A 47% rise in individual tax receipts.

Summary:  The Laffer Curve is right.  Higher tax rates yield lower tax revenue, and lower tax rates yield higher tax revenue.  It is simple economics, and hardcore liberals want nothing to do with it.