“Taken to its logical extreme, the Laffer curve makes no sense because, if you lower your taxes to zero, how are you going to get higher revenues?”

Source: My Years As Prime Minister (2007), Chapter Two, The Virtuous Circle, p. 75
Context: I never bought into the Laffer curve, a theory, named after an American supply-side economist who had been an adviser to the Reagan administration, that essentially argues that a government will increase its revenue by reducing its taxes. If it were that easy, everybody would do it. What politician doesn't want to reduce taxes in order to win votes? Taken to its logical extreme, the Laffer curve makes no sense because, if you lower your taxes to zero, how are you going to get higher revenues? In practice, every government that toyed with this theory ended up with larger deficits, higher interest rates and greater social inequality.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Taken to its logical extreme, the Laffer curve makes no sense because, if you lower your taxes to zero, how are you goi…" by Jean Chrétien?
Jean Chrétien photo
Jean Chrétien 34
20th Prime Minister of Canada 1934

Related quotes

Robert Kuttner photo

“Unfortunately, the Laffer curve did not work as advertised. Lower tax rates did not produce more tax revenues. They produced deficits.”

Robert Kuttner (1943) American journalist

Source: The Economic Illusion (1984), Chapter 5, Taxes, p. 208
Context: The total impact of the Reagan tax cuts on capital lowered the effective cost of capital to American industry by an estimated 1.2 percent. Unfortunately, the Laffer curve did not work as advertised. Lower tax rates did not produce more tax revenues. They produced deficits.

John F. Kennedy photo

“A tax cut means higher family income and higher business profits and a balanced federal budget…. As the national income grows, the federal government will ultimately end up with more revenues. Prosperity is the real way to balance our budget. By lowering tax rates, by increasing jobs and income, we can expand tax revenues and finally bring our budget into balance.”

John F. Kennedy (1917–1963) 35th president of the United States of America

Source: "Radio and Television Address to the Nation on the Test Ban Treaty and the Tax Reduction Bill" (18 September 1963) http://www.presidency.ucsb.edu/ws/?pid=9413

Milton Friedman photo

“If a tax cut increases government revenues, you haven't cut taxes enough.”

Milton Friedman (1912–2006) American economist, statistician, and writer

As quoted in "Milton Friedman's Last Lunch" at Forbes.com (11 December 2006)

Donald J. Trump photo
Nur Muhammad Taraki photo

“You are the one who should quit! Because of drink and old age you have taken leave of your senses.”

Nur Muhammad Taraki (1917–1979) Prime Minister of Afghanistan

Hafizullah Amin, as quoted in Nabi Misdaq (2006) Afghanistan: Political Frailty and External Interference, page 125.
About

Hafizullah Amin photo

“You are the one who should quit! Because of drink and old age you have taken leave of your senses.”

Hafizullah Amin (1929–1979) politician, former Afghan head of state (1979)

Amin on Nur Muhammad Taraki, as quoted in Nabi Misdaq (2006) Afghanistan: Political Frailty and External Interference, page 125

Ann E. Dunwoody photo
Sherrilyn Kenyon photo
George Harrison photo

Related topics