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Fun With the Laffer Curve
ByReductions in top marginal tax rates provide incentives for growth and lead to greater government revenues in the long run. That is not always the case. There is a point on the Laffer Curve at which tax cuts on the top margin stop generating increased income, but we are nowhere near that point now.
Ramesh Ponnuru unleashes what I hope is a dry wit and pretends to be puzzled by this:
Presumably what they mean is that the top income tax rate is higher than the revenue-maximizing rate, but I'm not sure why they think that it is. Bush's tax cuts appear to have caused revenue to be lower than it would otherwise have been, which suggests that we're already below the revenue-maximizing tax rate.
Meanwhile, McArdle has a book review spiked from a conservative publication for failure to conform to supply-side dogma.





























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