Egged on by Art Laffer, Trump is pondering another corporate tax cut. We break down the Laffer curve and the long revisionist economic history supporting it.
Brilliant article! Wish I wrote it myself. Great points about how post-recession economic growth alone would have increased revenues anyway, and the effect of the progressive tax structure meant that only ultra-rich folks would be exhibit Laffer-esque behavior.
The only thing I would take issue with is the Reagan era. I do understand and mostly agree with your points, but it does seem like it was the right tax cut at the right time. Such a huge reduction of tax rate actually could produce more behavioral change across more people during such a high-tax, highly regulated eras. But the much lower reductions in the other era probably had a much more minimal effect.
Brilliant article! Wish I wrote it myself. Great points about how post-recession economic growth alone would have increased revenues anyway, and the effect of the progressive tax structure meant that only ultra-rich folks would be exhibit Laffer-esque behavior.
The only thing I would take issue with is the Reagan era. I do understand and mostly agree with your points, but it does seem like it was the right tax cut at the right time. Such a huge reduction of tax rate actually could produce more behavioral change across more people during such a high-tax, highly regulated eras. But the much lower reductions in the other era probably had a much more minimal effect.