Government’s increasing role as a regulator and payor for health care services has resulted in a large and growing government health care wedge—an economic separation of effort from reward, of consumers (patients) from producers (health care providers). Rising government expenditures for health care are the main factor driving the growth in the wedge, which has…
A 0% tax on carousing, but 55% on thrift. April 2, 2009 By ARTHUR B. LAFFER In most cases, people who inherit wealth are lucky by an accident of birth and really don’t “deserve” their inheritance any more than people who don’t inherit wealth. After all, few of us get to choose our parents. It’s…
A sound tax system is simple to understand, not overly costly to implement, and minimizes economic distortions. Compared to other state, Texas’ current tax system is sound, but it can be improved by repealing property taxes and replacing the revenues with a reformed sales tax. Download full publication here.
Federal spending comes with costs and should not be accepted as the “free lunch” it is frequently considered to be. As states consider whether to accept federal stimulus funds, this paper examines the cost of those federal funds and argues that an increase in the government expenditure wedge will reduce growth in the economy, resulting…
About a year ago Stephen Moore, Peter Tanous and I set about writing a book about our vision for the future entitled “The End of Prosperity.” Little did we know then how appropriate its release would be earlier this month. Financial panics, if left alone, rarely cause much damage to the real economy, output, employment…
The Wall Street Journal 12/10/07 A record eight million Americans moved from one state to another last year. Where is everyone going, and why? The answer has little to do with climate: California has arguably the nicest climate of any state in the nation – yet in this decade more Americans have left the Golden…
The Wall Street Journal 10/15/96 Bob Dole’s proposal to cut income tax rates by 15% across the board and halve the capital gains tax rate has resurrected all sorts of issues from the policy debates of the Reagan ’80s. The Dole plan also stands — notwithstanding Jack Kemp’s unavailing arguments for it in last week’s…
International Herald Tribune, Zurich – August 24/25, 1985 Washington – … The bulk of U.S. tax cuts began on Jan. 1, 1983, and the economic recovery began at the same time. Isn’t it amazing how tax reductions do not work until they take effect? More to the point, the downturn of 1981 and 1982 as…
