Arthur Laffer in The Reagan Era

Arthur Laffer in The Reagan Era

Arthur Laffer (1940–) is a conservative economist whose unorthodox ideas on tax rates and revenues heavily influenced Ronald Reagan's tax policies in the early 1980s.

Laffer suggested that lower tax rates would actually lead to higher tax revenues for the government because the lower taxes would spur more economic activity by individuals and businesses, leading to faster economic growth. 

But the Reagan tax cut of 1981, built upon Laffer's concepts, failed to increase tax revenues as Laffer suggested it would.