Cancel 2016.2
The Almighty
Whether tax cuts are beneficial to the economy is a separate (albiet related) issue altogether. The issue is impact of tax cuts on revenues, not the economy. The relevant inquiry is whether the economic growth resulting from the tax cuts is large enough and lasting enough to cause an increase in revenues despite the lower tax rates.
Yes, that was an add on to my comments on the benefits of tax cuts. Revenues tend to increase in the short term, but are unsustainable in the long term without spending cuts. UNLESS you have extreme situations like the cuts that Kennedy and Reagan did on the top rates. Those were drastic cuts and did indeed have long term benefits to the health of the economy and thus revenues.
But as I said, Laffer understands that a tax cut/increase is not the only thing effecting the economy and revenues. Thus it would be silly to base a decision simply off of the Laffer curve.