The (hopefully) much anticipated final installment in the video series on the Laffer Curve has been released. This new video discusses the revenue-estimating process, and it builds upon the discussion of theory in Part I and evidence in Part II.
You will notice that the video clearly concludes that “dynamic scoring” is preferable to “static scoring,” but it also explains that there are significant challenges in properly estimating revenue feedback when tax rates are changed. That is why a key point is the need for transparency. If the Joint Committee on Taxation no longer operated in secrecy, it would be possible for experts to engage in a productive debate on how to best measure the revenue effects of various tax policies.
Please feel free to contact me if you have any questions or feedback. I also will be narrating the Center for Freedom and Prosperity’s next two videos, which will discuss the global flat tax revolution and the flat tax v. national sales tax debate. Stay tuned.