Back in 2010, I excoriated the new Prime Minister of the United Kingdom, noting that David Cameron was increasing tax rates and expanding the burden of government spending (including an increase in the capital gains tax!).
I also criticized Cameron for leaving in place the 50 percent income tax rate imposed by his feckless predecessor, and was not surprised when experts began to warn that this class-warfare tax hike might actually result in less revenue because the reduction in taxable income could be more significant than the increase in the tax rate.
In other words, bad policy might lead to a turbo-charged version of the Laffer Curve.
Allow me to elaborate. In most cases, punitive tax hikes do raise revenue, but not as much as politicians predict. As explained in this three-part video series, this is because it takes a very significant reduction in taxable income to offset the…
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Though modern historians typically use the terms Western Roman Empire and Eastern Roman Empire to describe the new political situation, the Romans themselves never considered the empire to have been formally divided, still viewing it as a single unit, although most often having two rulers rather than one. Over the course of the 5th century, the western empire experienced a period of catastrophic decline. Not only were many of the rulers in the west generally lacking in competence, but…
Image credit: autocarbrands.com 

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