When I heard that the Obama administration’s latest budgets could leave us indebted to the tune of 1.25 QUADRILLION dollars, I knew two things. First, I knew this was very very very bad news. Second, I knew that the number was so incomprehensible as to be practically unreal to most folks.
Art Laffer creator of Laffer curve – taxes could be lowered while generating tax revenue. This model is based on a tax rate from 0 to 100% using the theory of taxable income elasticity. Critics argue it’s too simple and that a single tax rate or labor supply is not static.
It is noted the Laffer does not take credit for this model claiming it was a composite from several other people such as Muslim philosopher Ibn Khaldun (1377), and Keynesian economics.
Laffer worked for Regan as his economic adviser is a well renowned pundit who explains that Kaynes made these claims how to get government to spur economic growth stated his principles but Keynes died before he could go back and correct the misguided people and his followers exaggerated the amounts for their own interest.
The Laffer curve was using to inspire Regonomics and the Kemp-Roth Tax Cut
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