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