Sidney Blumenthal Quotes
It was an absurd theory that by cutting taxes you would increase government revenues, because the growth of the economy would create an overflow of taxes that would fall into the government coffers.
Blumenthal, Sidney. "BuzzFlash Interviews Sidney Blumenthal." BuzzFlash, 2003.
The Laffer curve was a mathematical, economic curve supposedly showing the relationship between tax rate and government revenue from taxes. In Laffer’s version of this curve, as interest rates go down, revenue from taxes goes UP because according to Laffer, there will be much more economic activity if taxes are lowered. In reality this has happened rarely in certain countries and in a very narrow range of tax deduction. As Chretien observes if you lower the tax rate to zero according to the Laffer curve this should maximize revenue but obviously it does not because with a zero rate there are no taxes collected even if the economy is booming. The Laffer curve was ideologically popular with those politicians wanting to lower taxes, but it never stood up to serious analysis and never worked in practice as Chretien observes. As a result, some people refer to the curve as the Laughter curve.
Sidney Stone Blumenthal is an American journalist and political operative.