Sunday, May 27, 2012
Latest on the Laffer Myth
Krugman made another attempt to debunk the Laffer myth but it's a meme that won't die. Filip Spagnoli, an artist/philosopher from Brussels, also take a stab at it with a paper entitled There's no There, There: Low Tax Rates and Economic Growth, in which he says "neither the theoretical nor the empirical grounds for [the low tax = high growth theory] are sound. It may even be the case that low tax rates have unwanted harmful consequences instead of the assumed beneficial ones."