New tax bill test of Laffer curve theory

About Arthur Laffer

Arthur Laffer is an economist who first gained prominence during the Reagan administration as a member of Reagan’s Economic Policy Advisory Board (1981–89). Laffer is best known for the Laffer curve – an illustration of the theory that there exists some tax rate between 0% and 100% that will result in maximum tax revenue for governments. He is the author and co-author of many books and newspaper articles – including Supply Side Economics: Financial Decision-Making for the 80s. Laffer is Policy Co-Chairman (with Lawrence “Larry” Kudlow) of the Free Enterprise Fund and serves on the “Board of Scholars” of the American Legislative Exchange Council.

Laffer played a key role in writing California Proposition 13 – the property-tax-cap initiative that inspired a tax revolt across the nation. Laffer is the founder and CEO of Laffer Associates in Nashville – Tennessee – an economic research and consulting firm that provides global investment-research services to institutional asset managers – pension funds – financial institutions – and corporations.