“What Bush has done has been not very big, it’s pretty small,” Prescott told CNBC financial news television.
“Tax rates were not cut enough,” he said.
My thought on it: Tax cuts need to become a yearly ritual. They were during Bush’s first three years. Congress has pushed this latest (corporate) tax cut this year. A portion of any revenue increase resulting from marginal rate cuts ought to be devoted to further cuts – especially if the current baseline assumption that all rate cuts reduce revenue is going to be kept. Follow that policy and at some point we might hit the spot in the Laffer Curve where marginal rate cuts don’t increase revenue.