The Big, Bad Market: A French Psychosis?

6733Louis Rouanet writes in today’s Mises Daily:

But despite this crazy fiscal policy, French economists, who are rather statist and Keynesian, ignore the Laffer curve and the inefficiency of taxation. Instead of admitting the disastrous effects of taxes on capital accumulation and growth, there has been a debate about taxation of labor and capital. Indeed, some economists, such as Thomas Piketty, wrongly affirm that, in France, labor is more taxed than capital. This shows how disconnected to reality the debate has become. Pascal Salin, an economist belonging to the Austrian School, demonstrates that contrary to Piketty, income from capital is far more taxed than income from labor. However, nobody cares about overtaxation of capital because they think that equates to taxing the rich, and those inspired by Keynesianism think that consumption, and not capital, is the key for economic growth.

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