Funny thing is, the latest Laffer inspired experiment is going spectacularly poorly:
Back in August 2012, Laffer told a crowd at the Johnson County Community College, if Kansas would slash its income tax rates, it would result in “enormous prosperity.”
He told a reporter at the time that he had not produced an economic model on when Kansas will notice meaningful economic growth.
Two-and-a-half years later, Kansas is staring at a budget crisis, with more than a billion dollar gap between revenues and expenses projected in the current and next budget years. The state is also experiencing a low private job growth rate, as well as a slow-growing economy.
In a 45-minute phone interview, Laffer said while he is “not surprised,” he didn’t know why the deficits have occurred. He still believes adamantly in his supply-side economic theory: If you reduce income taxes, you will raise more revenue, not less.
Just when the revenue starts to rise is another matter.
“You have to view this over 10 years,” Laffer said. “It will work in Kansas.”10 years! Looks like his experiment is going to have to be terminated before then.
It's rather peculiar that Laffer is said to be influential amongst Republicans again, when the Kansas experiment isn't working. All a matter of ideology not caring about evidence, just like in climate change. (Although it appears Laffer may be somewhat more sensible about a carbon tax than most Republicans.)