Support NeoGAF

[Oblivion]

Raise my taxes if old:

Celebrity economist Arthur Laffer told me in an interview last week that he was not surprised by the huge deficits Kansas is facing because of massive tax cuts.

Back in August 2012, Laffer told a crowd at the Johnson County Community College, if Kansas would slash its income tax rates, it would result in “enormous prosperity.”

He told a reporter at the time that he had not produced an economic model on when Kansas will notice meaningful economic growth.

Two-and-a-half years later, Kansas is staring at a budget crisis, with more than a billion dollar gap between revenues and expenses projected in the current and next budget years. The state is also experiencing a low private job growth rate, as well as a slow-growing economy.

In a 45-minute phone interview, Laffer said while he is “not surprised,” he didn’t know why the deficits have occurred. He still believes adamantly in his supply-side economic theory: If you reduce income taxes, you will raise more revenue, not less.

Just when the revenue starts to rise is another matter.

“You have to view this over 10 years,” Laffer said. “It will work in Kansas.”


The economist clearly did not see the massive tax cuts in Kansas as an “experiment,” as described by Kansas Gov. Sam Brownback. Rather, he viewed the positive outcome in Kansas from tax slashing as a certainty.

“It may be a problem in the short term,” he said. But he said the governor and Legislature “did the right thing” by cutting income taxes.

Read more here: http://www.kansascity.com/opinion/opn-columns-blogs/steve-rose/article7024256.html#storylink=cpy

Step 1: Claim that tax cuts increase revenue and job growth because tax cuts always increase revenue and job growth.
Step 2: Don't bother creating any actual economic models because tax cuts always increase revenue and job growth.
Step 3: When confronted with reality, admit that although tax cuts always increase revenue and job growth, tax cuts will, amazingly enough, not lead to increased revenue and job growth.
Step 4: Brush away Step 3 because fuck it, why not?

 

[Escape Goat]

Try my plan. It works.

How?

magic.

 

[Vicetrailia]

Politicians can't help but lie.

 

[reggieandTFE]

Politicians can't help but lie.

He's not a politician. Economists consider themselves social scientists. Laffer is an ideologue hack.

 

[Randolph Freelander]

Laffer Curve still not passing the Laffer Test

 

[badcrumble]

Wait, Laffer is still alive and hasn't been jailed or executed?

 

[speculawyer]

You have to wait until I'm dead . . . . and then I don't give a shit what you think or say.

(Actuarial charts say that he'll most likely be dead before the 10 years are over.)

 

[Averon]

So the brilliant economics the GOP have been howling about for decades takes 10 yeas to "kick in"

This would be laughable if it weren't for the fact that so many people truly believe it.

 

[Manmademan]

Wait, Laffer is still alive and hasn't been jailed or executed?

If I could drag one man out back and beat him to death with his own shoes, it would be that guy.

 

[jamesinclair]

How long did it take for the Bush tax cuts to bring in that sweet sweet profit?

 

[JinjoUnchained]

Real economists have curves.

 

[Link]

That's s laff.

 

[smokeandmirrors]

TAXES TO ZERO INFINITE GROWTH

 

[JJD]

If I could drag one man out back and beat him to death with his own shoes, it would be that guy.

Out of curiosity, why? Not trying to troll or anything I'm just actually curious why you picked him out of countless bad guys out there.

 

[NYCmetsfan]

Wait, Laffer is still alive and hasn't been jailed or executed?

Lol why would he have either done to him?

If I could drag one man out back and beat him to death with his own shoes, it would be that guy.

Jesus Christ.

 

[RustyNails]

We tried this bullshit on the federal level with Reaganomics. American wages have been stagnant since then, rising poverty, shrinking middle-class but the wealthy doing absolutely stellar. They said the wealth would trickle down...

 

[speculawyer]

Obligatory.

 

[slit]

Someone should tie him in a chair and slap him until he admits he's wrong.

It's the only way these people will admit it.

 

[Sectorseven]

Hey now, the scientific man does not aim for an immediate result.

 

[Battersea Power Station]

He still believes adamantly in his supply-side economic theory: If you reduce income taxes, you will raise more revenue, not less.

Why?

Does he just feel it in his gut, or are there any good studies that support this with evidence?

 

[Oblivion]

What's so stunning is how utterly confident and smug he (and his ilk) are when it comes to arguing in support of this trickle-down garbage. Unless I'm mistaken, all, or virtually all instances where we tried lowering taxes, on any level of government has never resulted in more revenue than without the tax cuts. Hell, even Ronaldus Magnus, who brought us supposedly the greatest period of economic prosperity in the history of civilization, didn't even result in more revenues. And that's with the entire fricken country. What kind of economic explosion did they expect to come out of an oversized dirt ball like Kansas?

 

[speculawyer]

Someone should tie him in a chair and slap him until he admits he's wrong.

It's the only way these people will admit it.

I think they already know that they are wrong. They don't care if they are wrong. They just care about cutting the taxes on rich people.

When it fails, taxes will get raised, things will start working again . . . and then they can float the idea again because people are stupid. Who doesn't want to believe that cutting taxes will fix everything?

 

[whatsinaname]

What's so stunning is how utterly confident and smug he (and his ilk) are when it comes to arguing in support of this trickle-down garbage. Unless I'm mistaken, all, or virtually all instances where we tried lowering taxes, on any level of government has never resulted in more revenue than without the tax cuts. Hell, even Ronaldus Magnus, who brought us supposedly the greatest period of economic prosperity in the history of civilization, didn't even result in more revenues. And that's with the entire fricken country. What kind of economic explosion did they expect to come out of an oversized dirt ball like Kansas?

You've got to give it time. Don't think short term, think long term. Soon, the rising tide will lift all boats.

 

[RustyNails]

Why?

Does he just feel it in his gut, or are there any good studies that support this with evidence?

None. The wealthy out of their magnanimity will be more charitable if the pesky gubmint stopped getting in the way.

 

[badcrumble]

I think they already know that they are wrong. They don't care if they are wrong. They just care about cutting the taxes on rich people.

When it fails, taxes will get raised, things will start working again . . . and then they can float the idea again because people are stupid. Who doesn't want to believe that cutting taxes will fix everything?

Yeah. They don't actually care whether it's good for people because they believe in cutting taxes, period.

 

[slit]

I think they already know that they are wrong. They don't care if they are wrong. They just care about cutting the taxes on rich people.

When it fails, taxes will get raised, things will start working again . . . and then they can float the idea again because people are stupid. Who doesn't want to believe that cutting taxes will fix everything?

Of course they know they're wrong and that's why you force them to be truthful.

 

[Chichikov]

Why?

Does he just feel it in his gut, or are there any good studies that support this with evidence?

He makes a lot of money pushing that theory, as Upton Sinclair said “It is difficult to get a man to understand something, when his salary depends on his not understanding it".
The funny thing is that those tax cuts pretty much works as intended.
I don't know, maybe Laffer actually believes it, and Reagan might have too, but for the most part, proponents of such policies weren't expecting a revenue increase, I mean, they don't want the government to "have more money". Those policies were meant to achieve two things -

1. Give the GOP a popular economic position to campaign on (everybody hates paying taxes, right?).
2. Starve the beast, create a crisis which would totally force us (with the help of chicken shit Democrats) to make "hard decisions" and cut program the public likes.

Though these days there's a whole lot of Republicans who might actually believe that bullshit works.

 

[Oblivion]

Conversely, Obama's job killing tax hikes and regulations haven't worked as advertised by Republicans either.

Why's reality gotta be such a dick, huh?

 

[BobLoblaw]

If you reduce income taxes, you will raise more revenue, not less.

One of the stupidest theories out there. What the fuck is wrong with Republicans? Cutting taxes CANNOT create infinite revenue.

 

[TheSaddestSort]

We'll check in after a decade and be told we need to wait another ten years to see results.

 

[kess]

(Actuarial charts say that he'll most likely be dead before the 10 years are over.)

Liberals just don't understand good humor

 

[speculawyer]

We'll check in after a decade and be told we need to wait another ten years to see results.

Or they fully realize that no one is going to accept 10 years of a bad policy and will change it before the 10 years. Then they'll say "It was JUST about to start working!"

 

[Oblivion]

Or they fully realize that no one is going to accept 10 years of a bad policy and will change it before the 10 years. Then they'll say "It was JUST about to start working!"

Laffer didn't fail Kansas. Kansas failed Laffer.

 

[Metaphoreus]

Hey now, the scientific man does not aim for an immediate result.

Leaving the scientific man's wife eternally disappointed.

 

[Aaron Strife]

Conversely, Obama's job killing tax hikes and regulations haven't worked as advertised by Republicans either.

Why's reality gotta be such a dick, huh?

Hey man just give it ten years. Which it will be in four years.

 

[mercenar1e]

The money isn't trickling down fast enough! Lol

 

[adj_noun]

The next step is saying you'll see the results after we're all dead. History will vindicate the plan.

 

[jblank83]

Two-and-a-half years later, Kansas is staring at a budget crisis, with more than a billion dollar gap between revenues and expenses projected in the current and next budget years. The state is also experiencing a low private job growth rate, as well as a slow-growing economy.

WHOOPS

Guess it's time to beg... I mean "lobby"... for tax dollars provided by hard working blue-state citizens.

 

[Stinkles]

Bad excuse. His voting believers regardless of age, are not into long term planning due to stupidity and impending death.

 

[Link]

Conversely, Obama's job killing tax hikes and regulations haven't worked as advertised by Republicans either.

Why's reality gotta be such a dick, huh?

Reality has a well-known liberal bias.

 

[Bronetta]

Dont worry guys Amjad will remind us in 10 years.

 

[Log4Girlz]

Give it 10 years so we can capitalize on the states collapse.

 

[Couleurs]

We'll check in after a decade and be told we need to wait another ten years to see results.

No no, you see it just means taxes weren't cut enough

 

[A Fish Aficionado]

 

[Mike M]

Prepare to have your mind blown.

 

[ezrarh]

I should have been an economist. I could be completely wrong and still be successful.

 

[potam]

I should become an economist. Or a sports analyst.

 

[Suikoguy]

This actually works fantastic here, hahah.

 

[Suikoguy]

Prepare to have your mind blown.

I love when people use economic graphs without mentioning "All Other Things Being Equal" cause that is never the case, ever. And it's required for the graph to work.

 

[BlueSteel]

Prepare to have your mind blown.

Not sure if you're serious, but aggregate demand isn't equivalent to gdp

Edit :Er woops, supply I mean. Commerce the floggings