Free Republic

Kleinbard’s second argument against dynamic scoring is based on his assumption that bigger government is good for the economy since the government spends money wisely.I’m not joking. Federal deficits are on an unsustainable path (as it happens, because of undertaxation, not excessive spending). Simply cutting taxes against the headwind of structural deficits leads to lower growth, as government borrowing soaks up an ever-increasing share of savings. …these models are political statements. They show the biggest economic effects by assuming that tax cuts are financed by unspecified future spending cuts. The smaller size of government, not the tax cuts by themselves,...

Americans are right to be feeling so down about the economy, according to Art Laffer. The former economic advisor to President Ronald Reagan said Saturday that he can understand why people's views on the jobs market, inflation, and growth remain negative, despite a strong 2023 where price pressures cooled and the US managed to dodge a long-expected recession. "Let me just give you where the huge disconnect comes here," he told Fox Business. "People care about jobs, not unemployment rates, and so when you look at total jobs, it's way down."

Although some races are still being counted following Michigan's Republican primary Tuesday, it became clear the next day that former President Donald Trump had a big night in the Water Wonderland.Along with Trump-endorsed TV commentator Tudor Dixon sweeping the GOP primary for governor, Trump was, according to Bill Ballenger of the online Ballenger Report on Michigan politics, "6-0 in congressional endorsements."Rep. Bill Huizenga and five non-incumbent U.S. House candidates endorsed by Trump all emerged triumphant in the Tuesday primaries.The most-watched "scalp on the wall" for Trump was that of freshman Rep. Peter Meijer, who lost renomination in the 3rd District...

Reagan Economic Advisor Arthur Laffer explains what we need to do in order to beat 9.1% inflation

Not that long ago there was a broad political consensus that a fair and economically efficient tax system has a broad tax base and low tax rates. The grand bargain was no special interest loopholes and low tax rates to boost the economy and jobs. As recently as the 1980s, Democrats and Republicans alike joined together to pass a tax reform that lowered income tax rates to 28 percent, while eliminating deductions and carve outs. Nearly every Senate Democrat, including Ted Kennedy, Al Gore, Joe Biden, Bill Bradley, and Howard Metzenbaum, voted for this new tax system. It worked. SNIP...

Florida Congressman Carlos Curbelo is getting ready to introduce a bill repealing the gas tax in exchange for a carbon tax. It seems rather odd the Miami Republican wants to chart this path, especially after the House GOP overwhelmingly denounced the notion of a carbon tax last week, but Curbelo isn’t backing down from his proposal. He told Miami Herald his proposal is just a “first step” in the discussion. When you ask this question in a vacuum, is any tax detrimental to economic growth? It’s usually going to be yes…But when you put it in context and you...

Supply-side economist Arthur Laffer is predicting Republicans will win the White House in a landslide this year, regardless of the nominee. “I would be surprised if the Republicans don’t take 45, 46, 47 states out of the 50,” Laffer told host John Catsimatidis on “The Cats Roundtable” on New York’s AM-970 on Sunday. “I mean, I think we’re going to landslide this election.” Laffer, who served in various positions in the Nixon, Ford and Reagan administrations, said he is bullish on the entire Republican primary field. “When I look at these candidates, I don’t see one of them who wouldn’t...

IÂ’m a big advocate of the Laffer Curve. Simply stated, itÂ’s absurdly inaccurate to think that taxpayers and the economy are insensitive to changes in tax policy.Yet bureaucracies such as the Joint Committee on Taxation basically assume that the economy will be unaffected and that tax revenues will jump dramatically if tax rates are boosted by, say, 100 percent.In the real world, however, big changes in tax policy can and will lead to changes in taxable income. In other words, incentives matter. If the government punishes you more for earning more income, you will figure out ways to reduce the...

In country after country, increased government spending acted more like a depressant than a stimulant. - Policy makers in Washington and other capitals around the world are debating whether to implement another round of stimulus spending to combat high unemployment and sputtering growth rates. But before they leap, they should take a good hard look at how that worked the first time around. It worked miserably, as indicated by the table nearby, which shows increases in government spending from 2007 to 2009 and subsequent changes in GDP growth rates. Of the 34 Organization for Economic Cooperation and Development nations, those...

David Bahnsen of Newport Beach, California is a Senior Vice President of Morgan Stanley, and also serves on the Board of Advisers of the California Recovery Project with Dr. Arthur Laffer. Bahnsen has abandoned his earlier support of the Ron Paul crusade, and now describes himself as an "economically literate Republican." He is the author of "The Undiscerning and Dangerous Appreciation of Ron Paul." Bahnsen says "It is the ironic that Ron Paul's alleged praiseworthiness comes from his devotion to the Constitution, when in fact, he has emphatically rejected it." Bahnsen has many family and business connections with libertarians. His...

We’ve finished economist Arthur Laffer’s new book, Eureka! How to Fix California, which he delivered to the Register this morning in person while visiting with our Editorial Board. It’s a good. But in a sense it’s a wonder why people have to devote countless hours of research to study such stuff, when the conclusions are so intuitively obvious. In short . . .

California need not drown in debt and economic failure. So says Arthur Laffer, the happy advocate of a flat tax for California to solve the Golden State’s ills. We are inclined to favor a flat tax, as we’ve intimated and bellowed from time to time. And Laffer’s new book, Eureka! How to Fix California, is a blueprint for replacing the existing state and local taxes with a single, 5.8-percent flat income tax on personal unadjusted gross income. . .

The Telegraph reports that Britain's new higher taxes on the rich aren't producing any revenue for the government. It appears that people are changing their behavior to avoid the levy. [end quote] Senior sources said that the first official figures indicated that there had been “manoeuvring” by well-off Britons to avoid the new higher rate. The figures will add to pressure on the Coalition to drop the levy amid fears it is forcing entrepreneurs to relocate abroad. [end quote] Not only did revenues to the UK Treasury not go up. They went down by £509 million, or roughly 5%. The...

Noman was delighted to find an Arthur Laffer opinion piece in this morning's paper. In it, he argues that a millionaire surtax would hurt everyone but the super rich like Warren Buffet. Noman imagines that Buffet knows this, which is why he felt safe being so bold as to champion the notion. [quote] Waving Mr. Buffett's op-ed for all to see, Mr. Obama wasted no time in proposing a surtax on millionaires called the "Buffett Rule." Putting aside all the oohing and ahhing over Mr. Buffett's selflessness, his effective tax rate on his true income would hardly budge if this...

Newt Gingrich Endorsed by Architect of Reagan Economic Plan, Economist Arthur Laffer Dyersville, IA – Renowned economist, father of The Laffer Curve and supply-side economics, and architect of the Ronald Reagan economic plan, Arthur Laffer, announced his endorsement today of Newt Gingrich for President of the United States. “Newt has the best plan for jobs and economic growth of any candidate in the field,” said Laffer. “Like Ronald Reagan’s tax cuts and pro-growth policies, Newt’s low individual and corporate tax rates, deregulation and strong dollar monetary policies will create a boom of new investment and economic growth leading to the...

Economist Stephen Moore, one of the architects of presidential contender Herman Cain’s 9-9-9 tax plan, said Cain needs to rework a critical component of the plan. Cain’s plan would replace the current tax structure with a 9 percent corporate tax rate, a 9 percent personal income tax rate and a 9 percent federal sales tax. But speaking on Larry Kudlow’s radio show on Saturday, Moore said the sales tax should be replaced with a 9 percent payroll tax. “I’ve come to the conclusion that the American people and the voters do not want a national sales tax,” he said. “[Cain’s]...

“I think Nine-Nine-Nine is a wonderful plan. I think a lot of the candidates have very good plans for tax reform, but I love the Nine-Nine-Nine Plan. I think it's a great first step.”-- Economist Arthur Laffer, top tax adviser to President Ronald Reagan, on “ Special Report" with Bret Baier.” Arthur Laffer, one of the high priests of Reaganomics, who told Bret Baier Herman Cain’s Nine-Nine-Nine Plan is “wonderful.” House GOP Budget Boss Paul Ryan told the Daily Caller he “loves” Cain’s plan. In Republican circles those are two very big boosters, especially for a guy who is said...

The Obama administration's National Labor Relations Board filed a complaint last month against Boeing to block production of the company's 787 Dreamliner at a new assembly plant in South Carolina—a "right to-work" state with a law against compulsory union membership. If the NLRB has its way, Dreamliner assembly will return to Washington, a union-shop state, along with more than 1,000 jobs. The NLRB's action, which Boeing will challenge at a hearing next month, is a big deal. It's the first time a federal agency has intervened to tell an American company where it can and cannot operate a plant within...

SNIP On or about Jan. 1, 2011, federal, state and local tax rates are scheduled to rise quite sharply. President George W. Bush's tax cuts expire on that date, meaning that the highest federal personal income tax rate will go 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero. Lots and lots of other changes will also occur as a result of the sunset provision in the Bush tax cuts. SNIP Also, the prospect of rising...

The 1930s has become the sole object lesson for today's monetary policy. Over the past 12 months, the Federal Reserve has increased the monetary base (bank reserves plus currency in circulation) by well over 100%. While currency in circulation has grown slightly, there's been an impressive 17-fold increase in bank reserves. The federal-funds target rate now stands at an all-time low range of zero to 25 basis points, with the 91-day Treasury bill yield equally low. All this has been done to avoid a liquidity crisis and a repeat of the mistakes that led to the Great Depression. Even with...