Economist Art Laffer has written a very important supply-side article in today’s Wall Street Journal. In “The Tax Threat to Prosperity,” Laffer effectively answers his critics and underscores the particular importance of cutting the top tax rate, which impacts the top 1 percent of income earners.
This is the heart of the Laffer Curve. This is where the surplus revenues come from in response to the incentive effect of reducing that all-important top tax rate.
Of course, this is what is being missed in the whole goofy rebate-stimulus argument that is all the rage down in Washington.
And might I add that this so-called rebate stimulus is having no impact at all on the stock market. This is for the very simple reason that it contains no permanent economic growth effect.
Bravo to my dear friend and mentor Art Laffer.