It's a paradox! Higher taxes yield less revenue

Regarding Portugal's current economic crisis, the Financial Times reports:

Income from value added tax, the government’s biggest source of tax revenue representing about 36 per cent of the total, has been falling since 2008, despite a sharp increase in the rate

Income from the tax "has been falling ... despite[!] a sharp increase in the rate"?  Those familiar with the Laffer Curve know that, at high rates of taxation, that should be "because" not "despite."

Daniel J. Mitchell (Ph.D in Economics from Geo. Mason University) has helpfully collected examples of Laffer Curve effects from Europe, including Portugal, Greece, Spain, Bulgaria, France, Italy, the United Kingdom.

In the US, Pres. Obama is trying the same thing over again and expecting a different result.

Hat tip: Instapundit.

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