Limitations of the Laffer Curve as a Justification for Tax Cuts

Professor Laffer’s paper’ leads me to ask four questions, which I shall address in turn: 1, Is the Laffer curve an accurate depiction of economic reality? 2. Are we in a prohibitive region of the Laffer curve, that is, a region in which a tax rate cut would increase tax revenues? 3. If we are not in a prohibitive region, could we cut income tax rates and get the positive output effects without also cutting government spending? 4. Should we let our answer to the second and third questions determine our position on cutting taxes?...