02 May '11, 8am

American Budgetary Politics: Taxes, Deficits, and the Notorious “Laffer Curve”

American Budgetary Politics: Taxes, Deficits, and the Notorious “Laffer Curve”

Most politicians today would agree that our current debt-to-GDP ratio is untenable. But given today’s supply-side rhetoric around tax policy, can we really expect higher taxes any time soon? In early February of this year, New York Times columnist Paul Krugman blogged that Americans “want state governments to balance their budgets without cutting spending or raising taxes.” To me, wanting both tax cuts and government spending sounds like a dysfunctional combination of supply-side policies trying to fund Keynesian policies. As a nation, can we move away from this knee-jerk supply-side policy of tax cuts? Or will we be stuck, as Krugman writes, with “a mandate to repeal the laws of arithmetic”?

Full article: http://www.triplepundit.com/2011/05/american-budgetary-po...

Tweets

On Eve of Holocaust Remembrance Day, Bachmann C...

care2.com 02 May '11, 3am

Is paying taxes to fund a social safety net that will keep millions of poor, sick and elderly people alive and healthy com...