The Laffer curve isn't necessarily wrong, merely the assumptions of those that use it. The question shouldn't be, "How much do we reduce taxes to maximise government revenue?" but "How much do we *change* taxes to maximise government revenue?" The idea that the answer is to raise taxes doesn't occur to these guys.
Of course, maximising government revenue for it's own sake, is poor public policy.
The Laffer curve isn't necessarily wrong, merely the assumptions of those that use it. The question shouldn't be, "How much do we reduce taxes to maximise government revenue?" but "How much do we *change* taxes to maximise government revenue?" The idea that the answer is to raise taxes doesn't occur to these guys.
Of course, maximising government revenue for it's own sake, is poor public policy.