Hauser's law: Difference between revisions
Created page with "Hauser's law is the empirical observation that, in the United States, federal tax revenues since World War II have always been approximately equal to 19.5% of GDP, regardless of wide fluctuations in the marginal tax rate. This observation suggests that changes in tax rates do not significantly affect the overall tax revenue as a percentage of GDP. Hauser's Law is often compared to the Laffer curve, but while the Laffer curve is a theoretical argument, Hauser's Law is bas..." |
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Revision as of 20:09, 30 June 2025
Hauser's law is the empirical observation that, in the United States, federal tax revenues since World War II have always been approximately equal to 19.5% of GDP, regardless of wide fluctuations in the marginal tax rate. This observation suggests that changes in tax rates do not significantly affect the overall tax revenue as a percentage of GDP. Hauser's Law is often compared to the Laffer curve, but while the Laffer curve is a theoretical argument, Hauser's Law is based on empirical data.
Hauser's Law remains a significant concept in discussions about tax policy and economic theory. It suggests that the relationship between tax rates and revenue is more complex than simple linear assumptions and highlights the importance of considering broader economic factors such as GDP growth.