Conservative talk show host Dennis Prager has launched a new online college to fight liberal bias, Prager University. A new class on the Laffer Curve has opened, which strives to answer the question: Do High Taxes Raise More Money?

Prager University Laffer Curve Course: Do High Taxes Raise More Money?

UCLA Economics professor, Tim Groseclose, reviews the Laffer curve in detail, and demonstrates the fiscal realities of taxes hurting revenues. Groseclose discusses why the ideal tax rate seems to be around 33% and Prager University also offers supplemental notes from the professor that highlight this fact.

Groseclose is the Marvin Hoffenberg Professor of American Politics at UCLA and has appointments in the political science and economics departments at that institution. He has recently published a book, Left Turn: How Liberal Media Bias Distorts the American Mind, that mathematically demonstrates how our press creates a much more liberal viewpoint among Americans.

Why would this lesson be a good early entry in Prager University’s offerings? Daniel J. Mitchell of the CATO Institute explains in a Forbes magazine article: The Laffer Curve Shows that Tax Increases Are a Very Bad Idea — even if They Generate More Tax Revenue

The Laffer Curve is a graphical representation of the relationship between tax rates, tax revenue, and taxable income. It is frequently cited by people who want to explain the common-sense notion that punitive tax rates may not generate much additional revenue if people respond in ways that result in less taxable income.

From Forbes Magazine

Unfortunately, some people misinterpret the insights of the Laffer Curve. Politicians, for instance, tend to either pretend it doesn’t exist, or they embrace it with excessive zeal and assume all tax cuts “pay for themselves.

Hopefully, as college and university students learn about the Laffer Curve, future politicians won’t be so keen to ignore it.