Posted on 10/14/2011 8:25:18 AM PDT by marty60
Although he does not claim to have invented the Laffer curve concept (Laffer, 2004), it was popularized with policy-makers following an afternoon meeting with Nixon/Ford Administration officials Dick Cheney and Donald Rumsfeld in 1974 in which he reportedly sketched the curve on a napkin to illustrate his argument. The term "Laffer curve" was coined by Jude Wanniski, who was also present. The basic concept was not new; Laffer himself says he learned it from Ibn Khaldun and John Maynard Keynes.Wikijunk
This may be unpleasant to some of you: We have benefited more from free trade than anybody else. Outsourcing is a win-win. Outsourcing is not new and immigration is not new. Immigration is the lifeblood of America and Im not just talking legal immigrants. If you give them benefits, youll ruin them. These guys are here hustling. They are hard-working, high-quality labor.
A simplified view of the theory is that tax revenues would be zero if tax rates were either 0% or 100%, and somewhere in between 0% and 100% is a tax rate which maximizes total revenue. Laffer's postulate was that the tax rate that maximizes revenue was at a much lower level than previously believed: so low that current tax rates were above the level where revenue is maximized.
http://www.ctrust.com/userfiles/file/ctc2008_06.pdf
Yeah BIG TIME STUFF: We have benefited tremendously from trade. It wasnt just Ronald Reagan. I voted for Bill Clinton twi c e . He did some pr e t t y spectacular things. He cut government spending, got rid of retirement cuts for retirees, r e appoint ed Re agans Fe d chairman twice, pushed NAFTA through Congress against his own party, cut the capital gains tax rates by the most ever Thats big-time stuff, he said.
http://www.ctrust.com/userfiles/file/ctc2008_06.pdf
But Reagan's tax cuts for the nonrich were big money losers, and it took the fiscal discipline of Bill Clinton to mop up the resulting red ink. Laffer gushes with praise for Clinton, but he's also a fan of Clinton's successor. "What Clinton did was, he gave Bush the fiscal flexibility to do what was right," Laffer says. In the face of the recession and terrorist attacks of 2001, Bush "needed to stimulate the economy and spend for defense, and Clinton gave him the ability to do that."
In other words, the Bush tax cuts were meant to create big deficits. But Laffer's O.K. with that. "The Laffer Curve should not be the reason you raise or lower taxes," he says. Perhaps not, but it does make for great campaign promises.
Read more: http://www.time.com/time/magazine/article/0,9171,1692027,00.html#ixzz1aln6xIQH
Laffer was a low level WH adviser during Reagan.
Administration and CabinetThe Reagan Cabinet Office Name Term
President Ronald Reagan 19811989 Vice President George H.W. Bush 19811989
Secretary of State Alexander Haig 19811982 George P. Shultz 19821989
Secretary of Treasury Donald Regan 19811985 James A. Baker III 19851988 Nicholas F. Brady 19881989
Secretary of Defense Caspar Weinberger 19811987 Frank C. Carlucci 19871989
Attorney General William F. Smith 19811985 Edwin A. Meese III 19851988 Richard Thornburgh 19881989
Secretary of the Interior James G. Watt 19811983 William P. Clark, Jr. 19831985 Donald P. Hodel 19851989
Secretary of Agriculture John Rusling Block 19811986 Richard E. Lyng 19861989
Secretary of Commerce Howard M. Baldrige, Jr. 19811987 C. William Verity, Jr. 19871989
Secretary of Labor Raymond J. Donovan 19811985 William E. Brock 19851987 Ann Dore McLaughlin 19871989
Secretary of Health and Human Services Richard S. Schweiker 19811983 Margaret Heckler 19831985 Otis R. Bowen 19851989
Secretary of Education Terrel Bell 19811984 William J. Bennett 19851988 Lauro Cavazos 19881989
Secretary of Housing and Urban Development Samuel R. Pierce, Jr. 19811989
Secretary of Transportation Drew Lewis 19811983 Elizabeth Hanford Dole 19831987 James H. Burnley IV 19871989
Secretary of Energy James B. Edwards 19811982 Donald Paul Hodel 19821985 John S. Herrington 19851989
Chief of Staff James Baker 19811985 Donald Regan 19851987 Howard Baker 19871988 Kenneth Duberstein 19881989
Administrator of the Environmental Protection Agency Anne M. Burford 19811983 William D. Ruckelshaus 19831985 Lee M. Thomas 19851989
Director of the Office of Management and Budget David A. Stockman 19811985 James C. Miller III 19851988 Joseph R. Wright, Jr. 19881989
United States Trade Representative William E. Brock III 19811985 Clayton K. Yeutter 19851989
Reagan, first act was to lift the oil embargo. And began cut in taxes and cuts in unnecessary spending.
The Laffer worship is well Laffable.
Yeah he voted for Clinton TWICE. Uh HUH.
Sorry but you aren’t allow to simply make facts up to fit your hysteric ignorance.
Thank you for showing me who Laffer is. He sounds good on TV!
Man are you really this ignorant of all historic fact?
I read that the ideal rate is between 16.5% and 17.8%, maximum revenue is achieved to the government. More or less than that range and total revenue to the government falls off.
I’m still trying to bend my mind around the idea that we shouldn’t use the Laffer Curve as an illustrative tool because of whom Arthur Laffer prefers as a presidential candidate.
PerryBot ?
I don’t understand this attack on Art Laffer at all. The Laffer Curve is an important part of constructive tax debate in this country. Does he give too much credit to Clinton? Hell yes he does - he should acknowledge that everything Clinton did he likes was sent to him by Newt’s congress.
But that’s about my only problem with him. I figure he does that so he has entry to networks like CNBC and so on. But the Laffer curve is a great description of how human nature reacts to tax policy. This is a mindless post IMO.
He didn’t. He made up a bunch of stuff about Laffer that has NO base in fact. You can get the real facts about Laffer at the following links
http://www.cnbc.com/id/24732335
http://en.wikipedia.org/wiki/Arthur_Laffer
Yeah he thought tax cuts for the “middle Class” was a big mistake.
So here we have 999.
Cut the corp, top 10% of earners to 9%
Then stick the “middle class” with a SECOND tax. Get rid of ALL deductions.
So Laffer intends to stick it to the middle class. Where Reagan wanted to help the middle class.
Laffer said Cain's 9-9-9 plan is sound so of course that makes him the subject of today's bile from marty
PerryBot ?
Yeah, must be the case. No other reason to slam Laffer. Laffer will probably love Rick Perry’s energy plan. Wonder what will happen then?
Ronald Reagan probably voted for FDR 4 times
ABsolutely agree....this post is almost ‘entertaining’.
ABsolutely agree....this post is almost ‘entertaining’.
What a total lie!!! Clinton was running huge $100-$250 billion dollar yearly budget deficits even after RAISING federal income taxes. It wasn't until the Republicans took over Congress in 1995 that the budget deficit was brought under control and a surplus from 1998-2001. And under a Republican Congress, Clinton LOWERED the capital gains tax and the economy took off.
Get your facts straight or do not post!
>>> Marty is a complete irrational Perry supporter who makes up his own reality to fit his emotional support for Perry and his mindless hate for Cain. >>>
I have figured that out - you are right.
FTR: I like Cain. I like Perry. I suspect Perry’s campaign will rally to some extent. Folks like Marty, showing a blithering ignorance of economics in a pathetic attempt to slam Cain is not going to help Perry’s cause. If I might suggest something to Perry - attack Obama. That’s what made you a phenom to begin with.
I’ve also read some of Marty’s other kindergarten shallow analysis of the 999 — decided this level of debate is not worth it.
You Damn right I am.
Governor Perry is about getting Americans back to work( more taxes paid, duh)
Not trying to find a way to such more blood from hard working Americans.
But hey Laffer LOVES THAT OUTSOURCING AND ILLEGALS HUH.
Did u think u were at HuffPo?
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