Thursday, July 26, 2012

Cutting Taxes Does Not Lead To Higher Government Taxes

 Below is another snippet from the article I read yesterday by Justin Wolfers that I really liked called:

 The Secret Consensus Among Economists

Below is a snippet: 

"How about the oft-cited Republican claim that tax cuts will boost the economy so much that they will pay for themselves? It’s an idea born as a sketch on a restaurant napkin by conservative economist Art Laffer. Perhaps when the top tax rate was 91 percent, the idea was plausible. Today, it’s a fantasy. The Booth poll couldn’t find a single economist who believed that cutting taxes today will lead to higher government revenue – even if we lower only the top tax rate. "