One who intends to leave others better off for his having existed.

6/29/09

Tax Cuts

The Laffer Curve, anyone know what this says?


 


It says that at this point on the revenue curve


you will get exactly the same amount of revenue as at this point…


 


Does anyone know what Vice President Bush called this in 1980, anyone?


 


Something-d-o-o economics, voodoo economics


 


Ferris Bueller’s Day Off


Do tax cuts pay for themselves?


 


If revenues rise from tax cuts


why cut spending?


 


Even by the standards of political boosterism


 this is extraordinary


 


No serious economist believes…tax cuts will pay for themselves


 


The Economist


 


If borrowing to pay for tax cuts help an economy in the short run


do unpaid for tax cuts retard growth in the long run?


 


Why would some want others to believe tax cuts pay for themselves?


 


Although the economy grows in response to tax reductions


it is unlikely to grow so much that lost revenue is completely recovered


by the higher level of economic activity


 


Council of Economic Advisors


Should higher interest rates and inflation 


correlated to tax cuts and increased borrowing


eventually reduce tax revenues following short term economic growth?


 


There is no credible evidence


tax revenues…rise in the face of lower tax rates…


 


Every $1 trillion tax cut should lead to $830 billion more debt


 


N Gregory Mankiw


Chairman of President Bush's Council of Economic Advisors, 2003-2005

No comments: