This implies that the hump in the Laffer Curve occurs at a 33% tax rate. (Although Romer and Romer did not discuss the Laffer Curve in their article, this fact follows from a few uncontroversial mathematical equations, which you can find on my blog or on the Prager University blog.)
If true, this new finding has some profound political implications. It means that even if you are an extreme socialist, only interested in maximizing the size of government, then you should want taxes to be no higher than 33%. And if you significantly value other goals — such as economic growth or allowing people the freedom to keep more of the money that they earn — then you should want a much lower rate.
The study by Romer and Romer is big news. Yet very few people are aware of it. It is astounding that the mainstream media have not reported it more widely.
The latter fact is one more demonstration of the importance of alternative media and alternative education sources — sources such as The Daily Caller and Prager University.
Tim Groseclose, in addition to being a faculty member at Prager University, is a professor of political science and economics at UCLA.