The Laffer Curve, Part III: Dynamic Scoring (old version)

A video by CF&P Foundation that builds on the discussion of theory in Part I and evidence in Part II, this concluding video in the series on the Laffer Curve explains how the Joint Committee on Taxation's revenue-estimating process is based on the absurd theory that changes in tax policy - even dramatic reforms such as a flat tax - do not effect economic growth. In other words, the current system assumes the Laffer Curve does not exist. Because of congressional budget rules, this leads to a bias for tax increases and against tax cuts. The video explains that "static scoring" should be replaced with "dynamic scoring" so that lawmakers will have more accurate information when making decisions about tax policy. For more information please visit the Center for Freedom and Prosperity's web site: www.freedomandprosperity.org.

Category:

News & Politics

Tags:

• laffer
• curve
• mitchell
• quinlan
• taxes
• tax
• competition
• oecd
• harmonization
• reagan
• freedom
• and
• prosperity

[gsteward85]

The conservative movement was detroyed by Neo-Conservatives or the "hawks" you refer to. They defected from the traditional conservative views, and adopted a "we know best policy" instead of the small government, small taxes principles that are two underlying supports of conservatism. The republican party is not filled with them, they just happen to be the leaders of it, sadly.

[adamcm1993]

This static system is an outrage. Why didn't Republicans fix it when they controlled Congress?!?

[Mershade]

@wreddon it's a theory that addresses the relationship between the tax rate and national production. It makes sense from optimizing federal revenue based on the behavior of taxpayers, but the current static scoring model is the problem for everyone in Washington.

[MrWatchdawg77]

We might have a Constitutional Amendment adjusting tax rates to the where the 'inflection point' is on the left side of the Laffer curve!

Also, we must be careful to assume that more government revenue is a good thing! The goal is not necessarily always higher government revenue but rather a a prosperous economy!

[XCritonX]

@wreddon I have a friend with an Economics degree who was a Keynesian when he graduated. Afterward he joined his family business. With in less than a year the government taxed the Keynesian out of him. Its amazing how reality and academics are so opposed.

[rainin]

its amuzing when he says "common sence is a commodity in washiington"because that was the conclusion i came to a long time ago.didnt want to believe it but now im moew than positive that that is true.WHY THE FUCK ARE WE ALLOWING THESE FUCK TARDS TO RUN OUR COUNTR?PLEASE SOMEONE EXPLAIN THAT TO ME.

[rainin]

why do you assume these types people would just up and leave congress?

[popcur]

That hit the spot. I believe the GOP will recover in about 20 years. Once when the Bushes, Chaneys, Rumsfield, Rice, Wolfowitz, MCcain, Gingrich, Powell, among others are totally out.

[TerryRay02]

Well said.

[RealBloppy]

Braves beat the Mets 9-3. Now that's what I like to see.. also the video was great. lol

[Surhotchaperchlorome]

Agreed.

Thanks for the correction, wreddon.

[Surhotchaperchlorome]

What circular reasoning?