I have long been what might be called a moderate supply sider (as well as a new Keynesian on various issues of macro theory). I believe that tax rates have important influences on behavior and, as a result, tax hikes do not generate as much revenue as static estimates suggest. However, I have long been skeptical that the United States is on the wrong side of the Laffer curve, except perhaps in a few special cases.
So imagine my surprise when I read this headline over at Bloomberg:
So imagine my surprise when I read this headline over at Bloomberg:
The brief article alleges to summarize what I said in an interview. My first reaction was, I didn't say that. My second reaction was, did I misspeak? Fortunately, the audio of the interview is right there. So I listened to myself (always a painful experience), and I think I said what I really believe--that tax hikes do not generate as much revenue as you might think. The Bloomberg headline is an unfortunate misrepresentation.
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