Brian Domitrovic and Art Laffer joined the AmeriChicks podcast for a conversation.
Brian Domitrovic with his latest at Forbes.com:
Brian Domitrovic offers a concise history of tariffs at Forbes.com:
A tariff “for revenue” was one where a rate was set low enough for the good in question to flow into the country in sufficient quantity to bring in increasing receipts to the government. A “prohibitive” tariff was one that was so high, receipts would go up if a rate were lowered. The “Laffer curve” concept was the most discussed theorem in political-economic debates in the United States in the 19th century.
Today’s Larry Kudlow radio program:
Yesterday on NPR’s Marketplace, Leftist host Kai Ryssdal tried his best to interview (more like trap and trick) House Ways and Means Chairman Kevin Brady. The interview is not too long, and a transcript can be found here if you prefer to read it.
De-funding government-funded radio like NPR should also be a part of the the tax reform bill, maybe we can get that next time.
On Thursday, the Joint Committee on Taxation confirmed that the Senate tax cut bill will boost economic growth and create jobs. Yet Republicans started freaking out that the bill might produce a slight increase in deficits over the next decade.
Every independent analysis of the Senate bill now confirms that it is a pro-growth bill. The only question now is how much growth will it produce. The JCT report says that the Senate plan will increase GDP by an average 0.8% over the next decade, and increase the number of jobs by 0.6%. Those might seem like small numbers, but they represent more than $100 billion in additional economic output and a million new jobs.
Given the incredibly sluggish pace of economic growth since the recession ended, you’d think boosting annual growth would be the paramount concern.
Peter Ferrara at The Daily Caller:
The tax reform bill now pending in Congress will be very pro-growth, like President John F. Kennedy’s tax cuts passed in the early 1960s, and the tax cuts and reform that President Ronald Reagan led in the 1980s. All of America will benefit from that soaring growth, and the long overdue end of long-term stagnation, where America has been stuck for a decade now.
Presidents Kennedy and Reagan fundamentally fixed the individual, worker side of the tax code, as Lawrence Kudlow and Brian Domitrovic explain in their recent book, “President Reagan and the Reagan Revolution: The Untold Story of American Prosperity.” When Kennedy entered office, the top income tax rate was 91 percent. He reduced that to 70 percent, and then reduced all the other tax rates by an equivalent percentage — roughly 23 percent — as well.
But that did not result in a 23 percent reduction in income tax revenues, which would have been the static estimate not considering resulting economic growth effects. Instead, revenues rose as the economy boomed for the rest of the 1960s, until Nixon’s tax increases and monetary policy chaos (cutting the dollar’s tie to gold) cut the boom short.