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{{cquote|In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.<ref>James L. Sundquist, ''[http://books.google.com/books?id=CeqOAdn-LEgC Politics and Policy: the Eisenhower, Kennedy, and Johnson Years]'' (Washington, DC: Brookings Institution Press, 1968) ISBN 0815782225, p. 44; video: [http://www.jfklibrary.org/Asset+Tree/Asset+Viewers/Audio+Video+Asset+Viewer.htm?guid={A138FFB8-5B6A-4C6A-A8CC-70C6E4FF39DA}&type=Audio%20%29%29 Address at the Economic Club of New York, December 14, 1962], John F. Kennedy Presidential Library and Museum</ref>}}

{{cquote|In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.<ref>James L. Sundquist, ''[http://books.google.com/books?id=CeqOAdn-LEgC Politics and Policy: the Eisenhower, Kennedy, and Johnson Years]'' (Washington, DC: Brookings Institution Press, 1968) ISBN 0815782225, p. 44; video: [http://www.jfklibrary.org/Asset+Tree/Asset+Viewers/Audio+Video+Asset+Viewer.htm?guid={A138FFB8-5B6A-4C6A-A8CC-70C6E4FF39DA}&type=Audio%20%29%29 Address at the Economic Club of New York, December 14, 1962], John F. Kennedy Presidential Library and Museum</ref>}}

Few economists dispute the general principle of the Laffer curve, although the optimum tax rate itself is a matter of controversy. In the Reagan era, tax cuts led to a near doubling of federal tax receipts ($500 billion to $900 billion), an effect attributed to the Laffer curve.<ref>[http://www.cato.org/pubs/pas/pa-261.html Supply Tax Cuts and the Truth About the Reagan Economic Record], by William A. Niskanen and Stephen Moore, Cato Policy Analysis No. 261 October 22, 1996.</ref> However, some dispute this, <ref>Blanchard, O. ''Macroeconomics, 4th edition''. 2003, Upper Saddle River, New Jersey: Pearson Prentice Hall (p. 430-431, 500)</ref> claiming that the increased revenue can be at least partly attributed to a policy of [[deficit spending]].

Few economists dispute the general principle of the Laffer curve, although the optimum tax rate itself is a matter of controversy. In the Reagan era, tax cuts led to a near doubling of federal tax receipts ($500 billion to $900 billion), an effect attributed to the Laffer curve.<ref>[http://www.cato.org/pubs/pas/pa-261.html Supply Tax Cuts and the Truth About the Reagan Economic Record], by William A. Niskanen and Stephen Moore, Cato Policy Analysis No. 261 October 22, 1996.</ref> However, some dispute this,<ref>Blanchard, O. ''Macroeconomics, 4th edition''. 2003, Upper Saddle River, New Jersey: Pearson Prentice Hall (p. 430-431, 500)</ref> claiming that the increased revenue can be at least partly attributed to a policy of [[deficit spending]].

==References==

==References==

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<references/>

[[category:economics]]

[[Category:Economics]]

==External links==

==External links==

* [http://biggovernment.com/dmitchell/2010/08/19/taxation-whats-the-ideal-point-on-the-laffer-curve/ Taxation: What’s the Ideal Point on the Laffer Curve?]

* [http://biggovernment.com/dmitchell/2010/08/19/taxation-whats-the-ideal-point-on-the-laffer-curve/ Taxation: What’s the Ideal Point on the Laffer Curve?]