Jonathan Swift on the Laffer Curve

But I will tell you a secret, which I learned many years ago from the commissioners of the customs in London; they said, when any commodity appeared to be taxed above a moderate rate, the consequence was, to lessen that branch of the revenue by one half; and one of those gentlemen pleasantly told me, that the mistake of parliaments, on such occasions, was owing to an errour of computing two and two to make four; whereas in the business of laying impositions, two and two never made more than one; which happens by lessening the import, and the strong temptation of running such goods as paid high duties, at least in this kingdom.

From An Answer to a Paper called a Memorial of the Poor Inhabitants, Tradesmen, and Labourers of Ireland, The Works of the Rev. Jonathan Swift, Volume 9

I found this reference in David Hume’s classic essay Of the Balance of Trade which is on the reading list of my International Economics class next Fall.

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