Bloomberg Businessweek has an amazing article, complete with a great 7-minute video of Arthur Laffer, Dick Cheney and Donald Rumsfeld talking over lunch this past November about what happened at Two Continents Restaurant in 1974 and detailing what was on that infamous napkin. This is a must read and a must see.
How would you classify the Laffer Curve today?
Laffer: It’s the same as always. It works. It’s not Republican, it’s not Democratic, it’s not conservative, it’s not liberal, it’s not left-wing, it’s not right-wing. It’s economics. People respond to incentives, and if you make something more attractive, they will do more of it. If you make something less attractive, they will do less of it. If you tax rich people and give the money to poor people, you are going to get lots and lots of poor people and no rich people. The dream in our country has always been to make the poor rich, not to make the rich poor.