This is from the Glenn Beck show of 2-16-2010.
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Art Laffer is a Democrat who was an economic advisor in the Reagan administration. He is most likely called a neo-con by the Democrat liberals – though that term is generally reserved for national defense advisors. Remember, all neo-cons are or were Democrats. He is famous for the “Laffer Curve“, but he often points out that it did not originate with him. Ironically, one person he always credits is John Maynard Keynes.
Many are advocating the Fair Tax versus the flat tax. The problem is someone, most likely Congress, has to decide what is fair; which means in time it will expand to thousands of pages like our current tax code. The Fair Tax in many ways is a VAT lite or a simple point of sale national sales tax. A flat tax is much better because everyone has skin in the game. Corporate dividends would still be taxed twice under the flat tax. However, ALL income would be taxed – no exemptions. Russia has a flat tax – let that soak in – as do most of the Eastern block countries of the former USSR.
The Latter curve explained – Part 1, Part 2, Part 3 – each is less than eight minutes.
To get a measure of the ’81-’82 recession, see any of the unemployment plots by Calculated Risk (March 2010).