Tuesday, May 17, 2016

Letting Laffer off lightly

Cutting taxes to balance the budget? You're having a Laffer - The Drum (Australian Broadcasting Corporation)

It seems to me that when journalists here write about Art Laffer, they tend to let him off pretty lightly.   (Kansas rarely gets a mention, strangely enough.  How's it going?  - still terribly, I see - you have to go to somewhere like Forbes to find a "free market" proponent to run the Laffer line that it'll all work out for the good - just you wait and see; give it a decade or so.  Oh, and universities and highway funding - who needs them? It's all a "spending problem", not a revenue one.  Lol.)

But nonetheless, Ian Verrender's explanation of what's happened with low interest rates (companies are paying out big dividends, while simultaneously having earnings decline) was interesting.

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