Laffer Sees Long and Short-Term Benefits From Tax Reform

The video discusses the potential benefits of a corporate tax rate cut, emphasizing both short-term and long-term economic growth. It argues that lower tax rates could reduce tax evasion and sheltering, encourage multinationals to return to the US, and lead to significant GDP growth. The discussion draws parallels to the economic prosperity following tax reforms in the 1980s under Ronald Reagan.

What immediate effect is expected from the corporate tax rate cut?

• Increased tax evasion

• Decreased stock market appreciation

• Reduced tax evasion

• Higher unemployment rates

Why might multinational companies reconsider their location due to the tax rate cut?

• Reduced incentives for moving out of the US

• Higher taxes in the US

• Better infrastructure in the US

• Increased labor costs in the US

What is one of the expected benefits of reduced tax sheltering?

• Increased corporate secrecy

• Higher reported income

• Lower GDP growth

• Decreased foreign investment

By how much is the total GDP expected to increase over the next 10 years due to the tax rate cut?

• 2%

• 5%

• 10%

• 15%

Which past US president's tax reforms are compared to the current tax rate cut?

• Barack Obama

• Ronald Reagan

• Bill Clinton

• George W. Bush