Inflation is high, supply chains are garbled, and incomes are stagnant. How can we pull out of this tailspin? The Federal Reserve touts its arsenal of fancy-sounding tools: interest rate changes, quantitative easing, and repurchase agreements, to name a few.
But the right way to grow our economy is much, much simpler: Cut the federal income tax.
In his new book, “Taxes Have Consequences,” economist Art Laffer examines the history of the major changes to the federal tax code since the establishment of our federal income tax in 1913.
Since its enactment, the top federal income tax rate has fluctuated immensely. The highest marginal tax rate has been as high as 91% (in times of war) and as low as 25%.
And throughout the last century, there has been a remarkable, consistent and irrefutable trend. The economy improves whenever this top marginal rate has been cut — and vice versa.
Consider the Roaring ’20s — which actually…
