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Business Spectator Column

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posted on 15 March 2008 by skirchner in Economics, Financial Markets

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I’m wondering, is there a connection between the ‘tax cuts are not inflationary’ argument and the Laffer Curve?

Posted by .(JavaScript must be enabled to view this email address)  on  03/17  at  07:28 AM

Ed, the Laffer Curve was designed to show the relationship between tax rates and revenue.  In particular, it was argued that along some part of the curve, you could lower taxes and increase revenue due to positive supply-side effects.

I’m not making any claims about the impact on total revenue, only that tax cuts contribute more to supply and less to demand than many analysts seem to suppose.

Posted by skirchner  on  03/17  at  09:41 AM

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