For President Obama, a lesson in tax policy

Three videos from the Center for Freedom and Prosperity on the Laffer Curve and why increasing taxes beyond a certain point leads to diminishing returns:

Part 1

Part 2

…and Part 3

Given our experiences with high taxes contributing to deepening the Great Depression on the one hand, and the tax cuts under Harding, Coolidge, Kennedy, Reagan, and Bush the Younger contributing to strong recovery and growth, one would think the argument over best practices would be settled. Unfortunately, it appears that the President, shockingly ignorant of History, needs to do some studying.

4 Responses to For President Obama, a lesson in tax policy

  1. Porkchop says:

    Harding? Ewwwwwww. Read up on him, especially the tariff he passed. If he wasn’t our worst president, he’s right at the top of the list.

    • Phineas Fahrquar says:

      Well, my point wasn’t to praise Harding as a great president, though I don’t think he was the worst, either. (FTR, I think it’s a contest between Nixon and Carter for the 20th century’s worst) Rather, in the face of a hard recession after World War I that extended into his term, Harding understood that the way to shorten it was to cut government spending and taxes. And it worked, which is why we don’t hear of the “Great Depression of 1920.”

      It would have been more precise of me to say the praise belonged to his Treasury Secretary, Andrew Mellon, who served under Harding, Coolidge, and (for a while) under Hoover. He understood just what had to be done during hard times. In fact, there was a joke of the time that “Mellon was so powerful, three presidents served under him.” 🙂

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