Economists: Tax Cuts Lose Money, and It's as Obvious as Evolution

If Mitt Romney and the Republicans sweep into power this coming November, we can pretty much be assured they'll try to revive the economy using tax cuts. Any chance that will work?

The University of Chicago's IGM Forum asked a panel of 40 economists about the matter, and got a pretty divided response. Just 35% percent definitely agreed. Another 35% were uncertain. Nobody asked how much tax cuts would grow the economy.   

Chicago_IGM_Taxes_Survey_GDP.PNG

The survey's second question dealt with another plank of GOP orthodoxy: the "Laffer Curve," which is the idea that tax cuts will pay for themselves by improving the economy enough that taxable income will actually rise. Pretty much the entire panel rejected the idea, but the pithiest response probably belonged to former Obama adviser and University of Chicago professor Austan Goolsbee:

"Moon landing was real. Evolution exists. Tax cuts lose revenue. The research has shown this a thousand times. Enough already."   

Chicago_IGM_Survey_Laffer.PNG

Presented by

Jordan Weissmann is a senior associate editor at The Atlantic.

Google Street View, Transformed Into a Tiny Planet

A 360-degree tour of our world, made entirely from Google's panoramas

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

The 86-Year-Old Farmer Who Won't Quit

A filmmaker returns to his hometown to profile the patriarch of a family farm

Video

Riding Unicycles in a Cave

"If you fall down and break your leg, there's no way out."

Video

Carrot: A Pitch-Perfect Satire of Tech

"It's not just a vegetable. It's what a vegetable should be."

Video

An Ingenious 360-Degree Time-Lapse

Watch the world become a cartoonishly small playground

Video

The Benefits of Living Alone on a Mountain

"You really have to love solitary time by yourself."

More in Business

Just In