Friday, November 14, 2008

Who’s Laffering now? - Paul Krugman Blog - NYTimes.com

A Nobel Prize winner of Economics on the backbone of Reagan Supply Side Economics. We've now learned don't work. Seriously, do not work. Kaput. And this article is from October '07.


Who’s Laffering now? - Paul Krugman Blog - NYTimes.com: "Who’s Laffering now?
The Bushies have used rising tax receipts since 2004 as supposed proof that tax cuts pay for themselves — carefully ignoring the fact that revenues plunged in the early years of the administration, and that the subsequent rapid growth basically just gets us back to the previous trend. Also, they’ve pretended not to notice that mainly the revenue comes from an incredible surge in corporate profits, the byproduct of an economy in which economic growth leaves most workers behind.
But anyway, the revenue surge is over.
The chart currently shown at the top of the CBO home page tells most of the story. (Sorry, getting graphics up on this blog is a real pain — no time right now.) A read of the report shows that the revenue slowdown is continuing: September 2007 revenues were only 2 percent higher than September 2006 revenues.
Bye-bye Bush revenue boom."

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