Ron Amundson’s Political Blog

Laffer Curve annotated with Presidents tax policy.

Granted, the argument the Republicans make, is the economy is still in the upper quadrant of the Laffer curve, where in decreased taxes will foster greater growth, and thus net revenue will increase. The problem with that analysis, is counterintuitive based at past history as concerns national debt as of percent of GNP.

National Debt as a % of GNP over time 1950-2010 projection

http://911review.org/Media/National_Debt.html

Certainly, the Laffer curve, as are most models of economics are drastically oversimplified, to say nothing of trying to model one thing, based upon a couple of parameters, where in a kazillion parameters actually interplay. Thus, even my graph is suspect, as it doesn’t take into account mitigating factors such as disruptive technology, new markets, world events, or other avenues of revenue or lack there of, not the least of which is foreign deferment and other avoidance strategies.