A Comment on the Laffer Model

Max Moszer

Cato Journal, 1981, vol. 1, issue 1, 23-44

Abstract: One feels constrained to step lightly in an examination of the Laf- fer curve. Laffer contends that higher tax rates, by removing incen- tive, will discourage work, lead to less output, and thereby reduce government’s total tax revenue. Surely the contention that lower tax rates will yield greater tax revenue is appealing. It should come as no surprise that it is as popular as apple pie and as holy as moth- erhood. I am painfully aware that, entering the arena with Profes- sor Laffer, I can only lose—if not directly at his hands, and because of the power of his theories, then because winning the debate would be just a Pyrrhic victory. Even the man on the anti-Laffer side still must continue to pay the present, unacceptably high, taxes; the reward of his position will be no further hope for, nor progress toward, tax relief, But the validity of the Laffer curve is indeed open to question, as I hope to demonstrate...

Keywords: Government; taxation; revenue; tax cuts (search for similar items in EconPapers)
Date: 1981
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.cato.org/sites/cato.org/files/serials/f ... l/1981/5/cj1n1-2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cto:journl:v:1:y:1981:i:1:p:23-44

Access Statistics for this article

Cato Journal is currently edited by James A. Dorn

More articles in Cato Journal from Cato Journal, Cato Institute Contact information at EDIRC.
Bibliographic data for series maintained by Emily Ekins ().