President-elect Donald Trump’s proposed tax policies will have a positive effect much the same President Ronald Reagan’s did, says economist Art Laffer.
Laffer, a former member of Reagan’s Economic Policy Advisory Board, told the Financial Times that Trump should not worry about America’s growing trade deficit, and he should welcome a strong dollar.
Laffer is a proponent of supply-side economics, which calls for lower taxes and regulations on businesses. The theory is ridiculed by liberals as “trickle-down,” which they contend never fully trickles down to those as the bottom as proponents assert.
But his “Laffer Curve,” which he sketched on a napkin in 1974 for Nixon officials Dick Cheney and Donald Rumsfeld, maintains that there is a certain tax rate between zero and 100 percent that will generate the most possible government revenue. That percentage, Laffer says, is relatively low.
https://www.newsmax.com/politics/art-laffer-supply-side-trump-tax-policies/2016/12/07/id/762793/