Wasn’t it Arthur Laffer who argued that increased economic growth due to tax cuts would deliver more revenue that would help cushion the impact of reduced revenue collection?
He said it would in certain circumstances, in certain amounts - that's why his theory on this is called "the Laffer Curve" - perhaps Kansas over shot, or perhaps there are other things to consider…..spending, etc...
Nationally that’s what happened in the early 2000s. The revenue increased with lower taxes. But they kept spending more while keeping it under 20% of GDP.
It was called the Laffer Curve. Not the Laffer Line
Your statement suggests a Line
“Wasn’t it Arthur Laffer who argued that increased economic growth due to tax cuts would deliver more revenue that would help cushion the impact of reduced revenue collection?”
If you cut taxes and spending by say, 30%, you’ll increase economic growth by a few points. In the long run, that will lead to economic prosperity, but in the short run you’ll be taking in much less tax revenue.
If all you do is cut taxes a lot but don’t also cut spending, the economic growth from the tax cuts probably won’t be enough to make up the budget shortfall in the short run, so yeah you’ll have budget deficits. That doesn’t mean high taxes and big government make fiscal sense. Taxes and spending have to be cut at the same time to avoid short term deficits.