FROM ISSUE NUMBER 50 - WINTER 1978 GO TO TABLE OF CONTENTS

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Taxes, revenues, and the “Laffer curve”

JUDE WANNISKI

As Arthur Laffer has noted, “There are always two tax rates that yield the same revenues.” When an aide to President Gerald Ford asked him once to elaborate, Laffer (who is Professor of Business Economies at the University of Southern California) drew a simple curve, shown on the next page, to illustrate his point. The point, too, is simple enough though, like so many simple points, it is also powerful in its implications. 

 


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