Bernie Sanders tax plans ignores the law of diminishing returns
Bernie Sanders’s Tax Plan Would Test an Economic HypothesisHow many iPhones would be sold if they were priced at $10,000 each? A lot fewer than are sold at the curent price and although the profit per unit would appear to go up, the lower number of sales would probably turn it into a loser, especially of comeptitors continue to price their phones for subtantially less.
Combined taxes on the highest earners would reach or pass the point at which higher rates mean less revenue — which could mean tax receipts disappoint.
The same thing applies to taxes has the high tax blue states are discoving. Raising rates in those states means more people move to lower taxed red states. Since most of these taxes are aimed at the wealthy, they are aimed at those who can more easily afford to make the move.
The fact is the Laffer Curve has shown that by lowering taxes, you actually increase the revenue in most cases over the long term because more business is generated creating more jobs, rather than the government sucking in all that money and redistributing it to people put out of work by the high taxes.