2 December 2017 In a swanky Washington restaurant in 1974, economist Arthur Laffer presented Dick Cheney and Donald Rumsfeld (future VP and US Secretary of Defence) a doodle on the back of a napkin. What appeared was a diagram of the now infamous “Laffer Curve”. The graph depicts the relationship between tax rates and tax [...]
The Trump agenda fiscal agenda has focused on tax reform, and especially the scope for cutting taxes. However, the esteemed Brookings Institute reminds us that despite the recent sharp declines in the US Federal government deficit, the USA confronts formidable fiscal challenges over the medium term. Eventually, the growth in American entitlement spending will [...]