Ahead of the US election result, former senior Reagan advisor Dr Arthur Laffer warns the US against continuing a policy of fiscal stimulus.
Describing tomorrow’s Presidential election as the ‘single most important’ in his lifetime, he argues that attempts to tax ourselves into prosperity have failed. To achieve an economic recovery we need lower taxes, spending restraints, improved monetary policy and increased free trade.
In this new paper, The Laffer Curve and the Failure of Stimulus Spending, Ronald Reagan’s former economic advisor highlights the historical evidence against stimulus spending and suggests that future economic success depends on lowering tax rates and encouraging the wealthiest members of society to declare all of their taxable income.
Raising Tax and Reducing Revenue
- A rich variety of data from the USA demonstrates that by raising taxes on the rich, the government reduce the amount they receive in tax revenue. This is especially true when raising taxes from the high rates we currently have.
- In order to raise revenue, governments should lower tax to a blanket rate that is both fair and economically advantageous for