“If the U.S. government has gone down and Illinois is just a name in the history books, the status of the state teachers’ pension fund is probably going to be the least of everyone’s worries. In less extreme scenarios, government finances are ultimately constrained by the much-maligned Laffer Curve. There is some point, however high the percentage, beyond which raising the tax rate not only doesn’t bring in more revenue, but actually lowers government income.”
Comment: Excellent article that hits many of the topics we address here regularly. The headline isn’t really descriptive of what it’s about.