Related Links

Supply Side Economics

• Fact, Fiction, and the Laffer Curve

  [Center for Freedom and Prosperity Foundation, August 19, 2009] Obama's higher tax rates may raise revenue, but far less than politicians expect.

• Corporate Taxes Are Killing U.S. Auto Industry

  [American Enterprise Institute, August 11, 2008] If the U.S. stays a high-tax environment, however, then it may well be that investors decide that it's just not profitable to base an auto manufacturer in the country. Only a government- supported industry would be sustainable.

• What Is a 'Windfall' Profit?

  [The Wall Street Journal, August 4, 2008] The "windfall profits" tax is back, with Barack Obama stumping again to apply it to a handful of big oil companies. Which raises a few questions: What is a "windfall" profit anyway? How does it differ from your everyday, run of the mill profit?

• Corporate Tax Cut Windfall

  [The Wall Street Journal, July 1, 2008]America's tax laws are repelling capital at the same time the rest of the world is inviting these dollars and the jobs and growth that inevitably follow. The best response going forward would be for Congress and the next Administration to reduce sharply the corporate tax rate so it is competitive with falling rates around the world.

• New Evidence on Government and Growth

  [The Wall Stree Journal, June 16, 2008]The early supply-siders were right...findings firmly reject the widely held view that lower taxes inevitably result in cuts in public services, slower growth and widening income inequalities. Today's policy makers should take note of how tax cuts and the pruning of inefficient government programs can stimulate sluggish economies.

• The Problem with the Corporate Tax

  [American Enterprise Institute, June 2, 2008] A corporate tax cut is perhaps the best simple recipe for promoting long-run growth in American living standards.

• Big Oil defends profits before irate senators

  [Fox News, May 21, 2008] The executives, appearing under oath, cited tight global supplies with scant spare production capacity and the fact that large areas of land and offshore waters remain offlimits to drilling. And they said they're worried Congress was talking of requiring the five companies to pay more taxes.

• The Decline of the Corporate Income Tax

  [American Enterprise Institute, May 1, 2008] Many countries have restructured their corporate tax structures in recent years and cut tax rates in efforts to improve corporate output and stimulate their economies. Using data for seventy-two countries over twenty-two years [signals] that higher corporate tax rates result in lower wages. Kevin Hassett and Aparna Mathur attribute this to "capital flight"--the movement of businesses from high-tax countries to countries with lower tax rates, which decreases productivity, and thus wages, in the former country.

• A Supply-Side World

  [Wall Street Journal, January 7, 2008] In recent weeks alone, some of the unlikeliest political leaders have endorsed tax rate cuts in the name of making their economies better.

• Corporate Tax Laffer Curve

  [Cato Institute, November, 2007] The Laffer curve illustrates the idea that above a certain tax rate, cuts to the rate cause the tax base to expand sufficiently for revenues to increase. At 35 percent, the U.S. corporate tax rate seems to be above that rate, and thus in a strong Laffer zone.

• The Supply-Side Solution

  [Wall Street Journal, November 9, 2007] Despite ample evidence to the contrary, liberal publications have devoted great space and attention to attacking the entire theory that lower tax rates can increase incentives for investment, saving and work.

• Who Benefits From Inflation Targeting?

  [NBER Digest, October 3, 2007] Targeting nations, especially emerging governments that have achieved their inflation target, see the biggest improvement.

• Labor Dumping

  [Cato Institute, August 30, 2007] The flood of foreign labor pouring into the United States, the European Union and other hospitable environs has brought political strains. But there is little chance of stemming migrant inflows, as long as the countries supplying immigrants embrace policies that effectively mandate labor dumping.

• April Revenue Shower

  [Wall Street Journal, May 9, 2007] Here's the "surge" you aren't reading about: the continuing flood of tax revenue into the federal Treasury.

• Our Competitors Are Cutting Their Corporate Tax Rates

  [Small Business & Entrepreneurship Council, April 21, 2007] The United States does poorly in international comparisons of corporate tax rates, says Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council.

• Rich States, Poor States

  [Wall Street Journal, January 25, 2007] States are now in a ferocious competition to attract jobs and businesses, says economist Arthur Laffer, who is advising several Governors and legislators on the issue, and one of the best ways to win this race is to abolish the state income tax.

• The 'Laffer Curve' Renamed

  [Cato Institute, June 14, 2006] Reductions in marginal tax rates may induce people to alter their taxable income in many ways: entrepreneurs may start more businesses, spouses of high-bracket taxpayers may rejoin the labor force and those previously working in the underground cash economy may take jobs that require taxes to be paid.

• Social Policy, Supply-Side and Fundamental Reform

  [Cato Institute, November 1, 2004] An overview and examination of Republican tax policy from 1994 through 2004.

• The Misunderstood Laffer Curve

  [Video,July 2004] Bruce Bartlett clarifies the Laffer curve effect and dispels the myth that cutting taxes will always balance the budget.