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 I’m not just talking legal immigrants. If you give them benefits, you’ll 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 wasn’t 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 agan’s Fe d chairman twice, pushed NAFTA through Congress against his own party, cut the capital gains tax rates by the most ever… That’s 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 1981–1989 Vice President George H.W. Bush 1981–1989
Secretary of State Alexander Haig 1981–1982 George P. Shultz 1982–1989
Secretary of Treasury Donald Regan 1981–1985 James A. Baker III 1985–1988 Nicholas F. Brady 1988–1989
Secretary of Defense Caspar Weinberger 1981–1987 Frank C. Carlucci 1987–1989
Attorney General William F. Smith 1981–1985 Edwin A. Meese III 1985–1988 Richard Thornburgh 1988–1989
Secretary of the Interior James G. Watt 1981–1983 William P. Clark, Jr. 1983–1985 Donald P. Hodel 1985–1989
Secretary of Agriculture John Rusling Block 1981–1986 Richard E. Lyng 1986–1989
Secretary of Commerce Howard M. Baldrige, Jr. 1981–1987 C. William Verity, Jr. 1987–1989
Secretary of Labor Raymond J. Donovan 1981–1985 William E. Brock 1985–1987 Ann Dore McLaughlin 1987–1989
Secretary of Health and Human Services Richard S. Schweiker 1981–1983 Margaret Heckler 1983–1985 Otis R. Bowen 1985–1989
Secretary of Education Terrel Bell 1981–1984 William J. Bennett 1985–1988 Lauro Cavazos 1988–1989
Secretary of Housing and Urban Development Samuel R. Pierce, Jr. 1981–1989
Secretary of Transportation Drew Lewis 1981–1983 Elizabeth Hanford Dole 1983–1987 James H. Burnley IV 1987–1989
Secretary of Energy James B. Edwards 1981–1982 Donald Paul Hodel 1982–1985 John S. Herrington 1985–1989
Chief of Staff James Baker 1981–1985 Donald Regan 1985–1987 Howard Baker 1987–1988 Kenneth Duberstein 1988–1989
Administrator of the Environmental Protection Agency Anne M. Burford 1981–1983 William D. Ruckelshaus 1983–1985 Lee M. Thomas 1985–1989
Director of the Office of Management and Budget David A. Stockman 1981–1985 James C. Miller III 1985–1988 Joseph R. Wright, Jr. 1988–1989
United States Trade Representative William E. Brock III 1981–1985 Clayton K. Yeutter 1985–1989
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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