### The Laffer Curve Theory -Reagan to Trump era

Posted:

**Sat 06 May 2017, 23:04:34**Mr. Laffer did a napkin sketch to sell people on his theory of improving tax revenue for the US Federal Government via tax reduction. It found purchase in the Reagan era and he is an advisor to the Trump era as well, it does have some merit, it has some issues with globalization providing ways outside the closed box of US economic operations as well.

The Laffer Curve:

The Laffer Curve earned its name from a 1978 article by the late Jude Wanniski (then-associate editor of the Wall Street Journal) appearing in The Public Interest entitled, “Taxes, Revenues, and the ‘Laffer Curve.’” Wanniski recounted a 1974 dinner he attended with Arthur Laffer (the professor at The University of Chicago), Donald Rumsfeld (chief of staff to President Gerald Ford), and Dick Cheney (Rumsfeld’s deputy and a former classmate of Laffer’s). When the foursome’s dinner discussion turned to President Ford’s “WIN” (Whip Inflation Now) proposal for tax increases, Dr. Laffer is said to have grabbed his napkin to sketch the curve as an illustration of the tradeoff between tax rates and tax revenues. Wanniski dubbed the tradeoff described as the “Laffer Curve.”

Hubbert's Peak is based on bell curve distribution, the Laffer curve is based on maximal governmental tax revenue based on tax rate. The real world tempers such approximations but does not negate the inherent truths expressed as tempered by the actual results and dynamics of the actual real world.

Is trickle down and supply side Laffer's Curve and Hubbert's Peak a similar effort in proving a trend without the legs required to be a functional tool for navigating the real word?

Your opinion?

http://www.investopedia.com/terms/l/laffercurve.asp

The Laffer Curve:

The Laffer Curve earned its name from a 1978 article by the late Jude Wanniski (then-associate editor of the Wall Street Journal) appearing in The Public Interest entitled, “Taxes, Revenues, and the ‘Laffer Curve.’” Wanniski recounted a 1974 dinner he attended with Arthur Laffer (the professor at The University of Chicago), Donald Rumsfeld (chief of staff to President Gerald Ford), and Dick Cheney (Rumsfeld’s deputy and a former classmate of Laffer’s). When the foursome’s dinner discussion turned to President Ford’s “WIN” (Whip Inflation Now) proposal for tax increases, Dr. Laffer is said to have grabbed his napkin to sketch the curve as an illustration of the tradeoff between tax rates and tax revenues. Wanniski dubbed the tradeoff described as the “Laffer Curve.”

Hubbert's Peak is based on bell curve distribution, the Laffer curve is based on maximal governmental tax revenue based on tax rate. The real world tempers such approximations but does not negate the inherent truths expressed as tempered by the actual results and dynamics of the actual real world.

Is trickle down and supply side Laffer's Curve and Hubbert's Peak a similar effort in proving a trend without the legs required to be a functional tool for navigating the real word?

Your opinion?

http://www.investopedia.com/terms/l/laffercurve.asp