Working in Washington can be very exasperating, and few issues are as frustrating as the Laffer Curve. Even market-friendly lawmakers frequently misinterpret the relationship between tax rates, taxable income, and tax revenue. The other 90 percent of politicians are even worse. Using straw-man arguments, they defend a revenue-estimating system that is based on the absurd notion that tax policy never has any impact on economic performance. I’ve complained vociferously (see here, here, and here), but that hasn’t worked.
It’s time to try something new. Regular readers of this blog may have seen the videos I narrated on tax competition and the corporate income tax. These videos, produced by the Center for Freedom and Prosperity, will never compete with Pamela Anderson, but they seem to get a decent amount of traffic by public-policy standards. So the Center has now released a video on the Laffer Curve with yours truly (a.k.a., the George Clooney of the free market movement) again serving as narrator. Indeed, this video is the first of a three-part series.
I sent the video to Art Laffer, who was kind enough to say, “This video is a great common-sense tutorial that shows the real relationship between tax rates, taxable income, and tax revenue. I hope it is widely viewed so that more people understand the need for pro-growth tax policy.” But I also want negative feedback. As in previous cases, I would welcome suggestions on how to make these videos more effective. Needless to say, feel free to share all of them with your friends and colleagues.