I was trying to remember where I heard of Laffer till Final-Fan mentioned Supply-side. Now correct me if I'm wrong but the Reaganomics theory was that if you cut taxes for the rich (not the poor as because the breaks they'll get back will be too small to matter), they will use the extra money to invest-therefore creating new taxable jobs which will make up for loss revenue. Unfortunately, what Reagan, and Laffer, found out that with the extra income, wealthy Americans merely bought more luxuries, BMWs, Perriere, i.e., a lot of imports instead of actually investing. What the US got in the 80s was merely a reduction in social services. So I think Laffer is discredited in his theory, kinda like Hoover's trickle down plan. Really, giving wealthy people more disposable income just shifts the economy in luxury buying-but doesn't really improve it the way you want it to.
