Posted on 08/10/2011 5:40:26 PM PDT by SeekAndFind
The only way President Barack Obama can solve the nation’s economic woes is to adopt “common-sense” Reaganomics, the policy’s architect Arthur Laffer claims in an exclusive Newsmax.TV interview.
Laffer said the White House called him in the spring and asked him to speak to Obama’s former Council of Economic Advisors’ chairman Austen Goolsbee – and he had told him exactly the same thing.
“Reaganomics would fix any economy that’s in the doldrums,” Laffer said. “It’s not a magic sauce, it’s common sense.
“You’ve got to get rid of all federal taxes in the extreme and replace them with a low-rate flat tax on business net sales, and on personal unadjusted gross income. That’s number one.
“Number two, you have to have spending restraint. Government spending causes unemployment, it does not cure unemployment.
“Number three, you need sound money. Ben Bernanke is running the least sound monetary policy I’ve ever heard of," Laffer said.
“Number four you need regulations, but you don’t need those regulations to go beyond the purpose at hand and create collateral damage. The regulatory policies are really way off here.
“And lastly you need free trade," Laffer said. "Foreigners produce some things better than we do and we produce some things better than foreigners. It would be foolish in the extreme if we didn’t sell them those things we produce better than they do in exchange for those things they produce better than we do.”
In the interview the veteran economist said Standard & Poor’s was quite right in downgrading the U.S. credit rating – in fact it should have done so far earlier.
(Excerpt) Read more at newsmax.com ...
Thanks SeekAndFind.
This is a home run for Sarah Palin, whose campaign theme will be Comonsense Conservatism.
It’s late and the Cubs just failed to lose.
“Commonsense”
If you want to see something interest, look into the percentage of GDP collected in taxes verses tax rates over that same time period. No matter what the tax rate, government at all levels can’t get more than about 20% of GDP for a sustained period of time.
Therefore if you don’t want deficit spending, spending must be less than 20% of GDP or it simply won’t work. We’re currently spending something north of 25% of GDP at just the federal level..
Another factor is is states and cities are demanding a piece of that 20% of GDP maximum. A larger piece than they ever demanded before. That leaves even less for the Feds to collect without crashing the system.
It isn’t much more complicated than that.
According to him, 45% of the debt is because of the Bush Tax Cuts and another 15% is because of Iraq and Afghanistan, you know, the Bush wars. Oh yeah, and that Stimulus plan is working really good.
Tax Receipts increase 35%+ after the Bush Tax Rate Cuts are implemented and the big lie continues unabated.
Great wasn't thrilled with the speech the guy gave because she had him there to discuss other things. For a Liberal, Great appears to look for the facts and not just follow the talking point meme.
“Laffer said the White House called him in the spring and asked him to speak to Obama’s former Council of Economic Advisors’ chairman Austen Goolsbee – and he had told him exactly the same thing.”
This is reminiscent of the scene from Atlas Shrugged where the head of state has John Galt brought to his hotel suite and offers him anything imaginable, if he will only tell them (those in power) how to fix the national crisis....
Just sayin’....
re: head of state has John Galt brought to his hotel suite and offers him anything imaginable, if he will only tell them (those in power) how to fix the national crisis....
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Could you tell us again whether John Galt gave the head of State any advise and if he did, whether the head of state heeded it?
Here we have Obama who spent MONEY to form a debt commission composed of republcians and Democrats — Simpson-Bowles.
The Simpson-Bowles Commission gave him, what I think, a good starting point to work with, including flattening tax rates, lowering corporate taxes to make them more competitive, and reforming entitlements. THIS IS HIS OWN COMMISSION MIND YOU !
What did this head of state of ours do? He SHELVED the Commission’s findings and never even brought it up to this day. That’s the kind of inept/ideological leader this country is so unfortunate to have.
That I can see but that does not prove that the rate Norway charges generates the maximum amount from that tax. It appears to be comparing different things.
The chart shows Norway receives the highest percentage of its taxes collected from the corporate income tax but does not show that the rate is at the optimal rate. There are too many variables not considered or specified.
He’ll never admit he was wrong and he won’t change course.
I agree the chart is incomplete. It does not tell the full story. Perhaps CEOs shift profit to their companies to reduce their income tax since the corporate rate is lower.. many factors. From your initial comment I thought you did not understand the data on the chart.
The data is interesting and appears to prove the Laffler Curve but actually only appears to do so. We do know that there are various means of shifting profit within the corporate context. And the countries most probably have different definitions of what expenses can count against gross income.
I am not sure that even if all the tax regimes were identical would it actually prove the Laffler curve.
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