Likewise, Laffer has not proved his point, either, as there is no way to point to increasing or decreasing revenues at any point in time and know for a fact what is behind the changes. It could be tax policy, or something that’s going on in the credit markets or currencies, or…
From everything I’ve read and seen, there is nothing at all that factually backs up his theory.
Not disagreeing with your assertion that there is a point where revenue is maximized, but that Laffer doesn’t seem to acknowledge other events that can affect revenues or that lowering tax rates to zero (hypothetically speaking) might have some other, much more negative consequences.
BTW, I have a friend who used to work for him, and she said exactly what you did. He’s brilliant (according to her), but his beliefs about taxes are like a religion to him. He is obsessed with taxes and supply-side economics.
