Free Republic

Kleinbard’s second argument against dynamic scoring is based on his assumption that bigger government is good for the economy since the government spends money wisely.I’m not joking. Federal deficits are on an unsustainable path (as it happens, because of undertaxation, not excessive spending). Simply cutting taxes against the headwind of structural deficits leads to lower growth, as government borrowing soaks up an ever-increasing share of savings. …these models are political statements. They show the biggest economic effects by assuming that tax cuts are financed by unspecified future spending cuts. The smaller size of government, not the tax cuts by themselves,...

IÂ’m a big advocate of the Laffer Curve. Simply stated, itÂ’s absurdly inaccurate to think that taxpayers and the economy are insensitive to changes in tax policy.Yet bureaucracies such as the Joint Committee on Taxation basically assume that the economy will be unaffected and that tax revenues will jump dramatically if tax rates are boosted by, say, 100 percent.In the real world, however, big changes in tax policy can and will lead to changes in taxable income. In other words, incentives matter. If the government punishes you more for earning more income, you will figure out ways to reduce the...

Americans are right to be feeling so down about the economy, according to Art Laffer. The former economic advisor to President Ronald Reagan said Saturday that he can understand why people's views on the jobs market, inflation, and growth remain negative, despite a strong 2023 where price pressures cooled and the US managed to dodge a long-expected recession. "Let me just give you where the huge disconnect comes here," he told Fox Business. "People care about jobs, not unemployment rates, and so when you look at total jobs, it's way down."

Reagan Economic Advisor Arthur Laffer explains what we need to do in order to beat 9.1% inflation

Supply-side economist Arthur Laffer is predicting Republicans will win the White House in a landslide this year, regardless of the nominee. “I would be surprised if the Republicans don’t take 45, 46, 47 states out of the 50,” Laffer told host John Catsimatidis on “The Cats Roundtable” on New York’s AM-970 on Sunday. “I mean, I think we’re going to landslide this election.” Laffer, who served in various positions in the Nixon, Ford and Reagan administrations, said he is bullish on the entire Republican primary field. “When I look at these candidates, I don’t see one of them who wouldn’t...