Listen to Art Laffer discuss the 1986 Tax Reform and the prospects for reform now:
Radio gold this morning as Larry Kudlow not only got Steve Forbes and Art Laffer to appear on his show at the same time, Larry had them on for about 45 minutes, over three segments. It was a very good discussion.
This link will take you to the mp3 of the entire interview, you can listen right in your browser or download the file to your computer or device.
— Michelle Balconi (@MichelleBalconi) July 15, 2017
☕ Larry Kudlow interviewed Art Laffer on his radio on Saturday. The entire show is here, and it’s a great show, but the Laffer interview starts at about 3:35. Enjoy.
☕ Professor Brian Domitrovic hosted a seminar in Texas on Saturday on supply-side history. The readings included John Rutledge and a chapter from Robert Bartley’s The Seven Fat Years. The seminar was a joint project between students from Sam Houston State University and University of St. Thomas.
From Detroit, comes another mention of Art Laffer’s newest book, a kids book he co-wrote called Let’s Chat About Economics. We mentioned this book when it came out in October, and with Christmas only 3 weeks away, maybe now is the time to get this great gift for the kids in your family. Get those kids thinking supply-side sooner, rather than later.
So it’s Christmas, and everyone is writing books for children, although most don’t deal with issues this hefty.
What sets Balconi’s book apart is her co-author — Arthur Laffer, one of the most influential economists in America and President Ronald Reagan’s economic adviser. He’s the father of supply side economics and author of the Laffer Curve, which measures the diminishing returns of higher tax rates.
Laffer’s a big deal, and children’s books aren’t his normal fare. But Balconi heard him speak at the Detroit Economic Club in 2012 and sent him a proposal. Laffer, who lives in Nashville, loved it.
“I thought it was a cool idea to touch kids in this way,” Laffer says. “It’s the basics — understanding incentives, trade-offs and other basic principles that come right from Michelle’s own family.”
Rex Sinquefield at Forbes.com talks about why the critics of Kansas’ implementation of supply-side economics have egg on their face after the 2014 election.
Justin McFarland, Kansas Director of Labor Market Information, rightfully proclaimed that the employment gain “continues to lead Kansas’ comeback from the Great Recession” and that the “increased income will continue to drive growth.”
This is good news for working families and their employers. Not so much for Brownback’s well-funded opponents, including the National Education Association and the American Federation of Teachers, which spent $60 million to defeat fiscal conservatives in the mid-term elections.
Powerful adversaries of Brownback’s pro-growth tax policies painted a dire “sky is falling” picture of the countless misfortunes that were sure to destroy the state’s economic future. While they may want to say and believe as they wish, the proof is in the numbers.
And while data is critical to the political process of creating good state fiscal policy, the most important figure is the 2.9 million people who live in Kansas whose lives are impacted by these policies. Kansans elect the people who are tasked with solving problems, and as the facts emerge, it appears that they have chosen wisely. The quantitative, 50-state data that is thoroughly documented in An Inquiry into the Nature and Causes of the Wealth of States (which I co-authored with Stephen Moore, Art Laffer, and Travis H. Brown) shows that every measure of economic prosperity is linked to taxation. Those states that limit or eliminate distortionary taxes, the worst of which are those placed on personal and business income, are able to expand their local economies.
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And this, from Allister Heath in London’s Telegraph on the upcoming Autumn Statement by George Osborne:
Changing tax rates also has an effect on incentives to work, invest, consume and transact which need to be taken into effect when setting policy and budgeting
So, given that there won’t be that much actual action, and only miniscule tweaks to the aggregate sums raised and spent, what we need to see instead is evidence of fresh philosophical and economic thinking from the Chancellor. We need him to embrace much more comprehensively supply-side economics and to paint a positive vision of an economy and society that are no longer weighed down by an oppressively large and unaffordable government sector.
In particular, the Chancellor needs to make it clear that he believes that lowering taxes on work would produce more of it, that cuts to the tax on the returns on capital would bolster corporate expenditure, productivity, jobs and growth, and that a smaller state is inherently a good thing, in terms of both improving the economy’s performance and by increasing the autonomy of individuals and families.
David Weigel writes for Bloomberg about the election result in Kansas where Governor Sam Brownback was re-elected. And, Art Laffer is talking publicly about politics:
Art Laffer declares victory in Kansas.
Art Laffer was used to wearing the black hat. For much of 2014, as polls showed Kansas Governor Sam Brownback in danger of losing re-election, progressives expected supply-side tax cuts to be rejected. That meant a rejection of Art Laffer, the Steven Spielberg of supply side, the man whose napkin illustration of how lower taxes meant higher revenue changed American policy forever in 1981. A generation later, Laffer stumped with Brownback, endorsing his deep tax-cut plans because “states without income taxes have grown much, much faster.”
Most people expected Brownback to lose. Plenty of columnists, including Tom “What’s the Matter with Kansas?” Frank, pre-wrote the obituary of supply-side. And then Brownback won, taking 98 of Kansas’s 105 counties. Laffer’s verdict on the election?
“I liked it,” he said.
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“The states that cut their taxes really outperform the states that raise them,” Laffer said. “People will see that. It’s really hard to balance a budget on the backs of unemployed, and people really do leave states when that’s tried. Look, the problem with cutting taxes is that you are going to suffer short-term losses in revenues. When you raise taxes you think you’ve got a windfall. Then in a few years, you’re Detroit. Kansas, by contrast, is going to do very well. Kansas City is going to be located in Kansas, not Missouri, if you give it a couple years.”