Monday, December 29, 2014
The Return Of The Laffer Curve And Dynamic Scoring
The Washington Post published an op-ed, posted below, which celebrates the 40th birthday of the Laffer curve and the restoration of the Reagan Administration myth that his tax cuts increased tax revenues. I was wondering why the Post bothered to publish the Laffer celebration until I was reminded by this article that the GOP wants to force the Congressional Budget Office to use dynamic scoring. Paul Ryan was unable to get the CBO to use dynamic scoring, but now that his party controls Congress it intends to find a CBO Director who will use the magic wand of dynamic scoring to show that tax cuts for the wealthy, and for corporations, will actually increase federal tax revenues. Dynamic scoring assumes that tax cuts will stimulate economic growth enough to pay for the tax cuts.