You may or may not have heard of the Laffer Curve. It’s a theory that decreasing tax rates may, under some circumstances, increase tax revenue (and vice versa).
Now, you don’t have to accept that the Laffer Curve is true if you don’t want. You don’t have to accept that the earth is round, or that the sun goes around the moon, or that the Washington Redskins are evil, no matter who coaches them. Facts don’t care if you believe them, and you certainly don’t have to believe them.
Still, it’s just willfully ignorant to go around trumpeting that you reject the “Laffer Curve Theory” if you don’t even know what it is. And most of the people I’ve heard take issue with it clearly didn’t know what it actually says. I’m not saying that, “They disagreed with me, so they were wrong.” I’m saying that they were busy disagreeing with some straw man they’d concocted that had hardly any resemblance to the Laffer Curve itself.
So, if you want to know what the Laffer Curve is about, Larry Kudlow pointed to this terrific video a few days ago, from the Center for Freedom and Prosperity. It’s only around 7 minutes long, and moves quickly, and is quite clear. Just don’t get distracted by the short appeal for a flat tax toward the end; the Laffer Curve is not connected to any particular means of taxation.
p.s. – I’m not a flat-tax proponent myself, largely for pragmatic reasons, namely, I don’t think it would remain transparently applied, and would quickly turn into a bureaucratically-managed VAT nightmare. But that’s another story.
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