Economic Reality and Tax Policy; Revisit Reagan Tax Cuts

Tax policy pundits and left leaning ideologues prefer to malign Reagan Tax Cuts and Supply Side Economics. However, their criticism is often devoid of facts and analysis. Oftentimes they confuse other influences on the economy. In a more recent revisiting of tax policy, many left leaning policy makers prefer to blame low tax rates for the economic crises and recession of 2007 through 2009. (We need an adult conversation on the "Great Recession" which has not been part of the media dialogue.)

With a new administration in Washington, DC and a focus on economic growth, an informed awareness of the effects of tax policies is very important. While data supports the arguments that lower taxes lead to greater economic growth, there is also a role for common sense.

People want more of what they keep. If government confiscates more of your effort and production with higher taxes, than most people will be less motivated to produce income and wealth. Is that not just common sense?

Simple Truth -
Lower taxes are good policy especially when current rates place workers or businesses at a competitive disadvantage. 

The economist most associated with advocacy for lower tax rates is Dr. Art Laffer who is associated with "Supply Side Economics." Here is his analysis of the economic impacts of Reagan Tax Cuts. It is worth reading and understanding.

Link to Laffer Paper on Reagan Tax Cuts