Wednesday, December 22, 2010

Obama Embraces “Laffer Curve” and Endorses “Massive Tax Reform”....















According to the NY Times, “President Obama is considering whether to push early next year for an overhaul of the income tax code to lower rates and raise revenues in what would be his first major effort to begin addressing the long-term growth of the national debt.”

Not to be outdone by those tax-cutting Conservatives, Obama’s fiscal commission has proposed eliminating almost all deductions and credits and going with a three-tier income tax (8%, 14% and 23%) and have a corporate income tax of 26%. It also offered some other rates depending on what deductions and credits were allowed to stay in.

If the Obama administration didn’t understand and accept that lower tax rates deliver higher tax revenues, they’d never approve the report of this fiscal commission and that report would’ve never seen the light of day.

Now that appears to be a refreshing change of view.

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