Arthur Laffer, “Donald Trump Wins by a “Landslide” and Lowers Taxes”
Some may recall that Arthur Laffer, the Laffer Curve, which he sketched on a napkin at a meeting with Dick Cheney and Donald Rumsfeld in Y 1974 then Ford Admin officials.
The Laffer Curve is represented as a graph that starts at a 0% tax rate with Zero revenue, rises to a maximum rate of revenue at an intermediate rate of taxation, and then falls again to Zero revenue at a 100% tax rate.
Mr. Laffer argued that if the tax rate is too high, it will weigh on economic growth and depress tax revenues.
He advocates low tax rates as the best Supply-Side means to stimulate growth, and has disparaged Demand-Side fiscal policies aimed at stimulating the economy.
Last week he predicted that Donald Trump will win the White House in a landslide.
He noted that when Ronald Reagan ran for President, he also was spurned by the Republican establishment because he was an outsider in many ways, like Donald Trump.
Mr. Lafer noted that in recent elections, Republicans have captured majorities in Congress and State Legislatures and represent the majority of Governors as well.
He is convinced that Donald Trump will lower tax rates for individuals and for corporations.
Promoting his supply-side paradigm, he said, “If you take money away from rich people to give to poor people, you will get fewer rich people and more poor ones.”
He says that he is not happy with Donald Trump’s anti-trade rhetoric, but believes that he really does not mean it. He reckons that if Donald Trump wins, he will appoint at least 1 conservative judge, who will swing the Supreme Court more toward Republican orthodoxy.