“Hauser’s Law”: Can Tax Revenues Exceed 19% of GDP?

May 17, 2010

David Ranson has an interesting piece at the Wall Street Journal about "Hauser's Law," the observation that federal tax revenues have historically not exceeded about 19%-20% of GDP despite significant increases and decreases in tax rates. The implication is that attempts to raise revenue above this purported ceiling will reduce GDP and thus reduce collections under the ceiling.

An interesting read with a neat chart.

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