Real Tax Cuts Have Curves

The economy booms, and Arthur Laffer has the last laugh.

Stephen Moore, of The Club for Growth, shows how the Bush tax cuts have jump-started the economy and brought in more tax revenue to government at the same time. The doom and gloomers in the Democratic party and The Angry Left called them "tax cuts for the rich," but as we can see in this article, the benefits have been largest for the middle class both in terms of jobs as well as investments. If the Democrats ever get back in power you can bet they will kill off the goose that lays the golden eggs and then we will all be back in the poor house. But The Angry Left will be happy for a change because everyone will be "equal."

They don't mention that it will be an equality of misery.

As legend has it, the famous Laffer Curve was first drawn by economist Arthur Laffer in 1974 on a cocktail napkin during a small dinner meeting at the Washington Hotel attended by the late Wall Street Journal editor Robert Bartley and such high-powered policy makers as Dick Cheney and Donald Rumsfeld. The Laffer Curve helped launch the Reaganomics Revolution here at home and a frenzy of tax-rate cutting around the globe that continues to this day.

The theory is really one of the simplest concepts in economics. Yet its logic continues to elude the class-warfare lobby, whose disbelief is unburdened by the multiple real-life examples that validate its conclusions. The idea is that lowering the tax rate on production, work, investment and risk-taking will spur more of these activities and thereby will often lead to more tax revenue collections for the government rather than less.