NC Budget and Tax Center

Flawed Methods Shouldn’t Guide Public Policy

In light of Arthur Laffer’s visit to North Carolina this week, a new analysis by the Institute on Taxation and Economic Policy on the Civitas/Laffer study for our state is particularly timely. 

Their main findings are that the report:

“• Fails to control for a large range of important non-tax factors that affect state economic growth.

Confuses cause and effect by assuming that declines in personal income in 2008 were due to taxes rather than the Great Recession.

Fails to examine the impact of increased sales taxes on the economy.

Makes claims that have been previously discredited by mainstream economists and relies on misleading and cherry-picked data.

Ignores the importance of taxes in financing public investments that have a far greater positive impact on economic growth than reducing tax rates.”

Check out the report in detail here.  It adds to the mounting evidence that the Civitas/ Laffer/Senate proposal is a bad one for North Carolina, not least because its case is not supported by the rigorous research needed for undertaking such a radical overhaul of the state’s tax system.

One Comment


  1. david esmay

    January 29, 2013 at 2:56 pm

    Who pays Laffer for his spurious economic proposals? Why it’s none other than the Koch brothers. Laffer gets a nice little 100,000 dollar stipend to spread his bovine scatology.

Check Also

Report: Millions of NC workers excluded from federal paid sick days protections as COVID-19 spreads

Millions of North Carolina workers, especially women and ...

State and Federal COVID-19 policy updates

Top Stories from NCPW

  • News
  • Commentary

At the end of an hour-long question-and-answer session with UNC-Chapel Hill Chancellor Kevin Guskiew [...]

North Carolina House lawmakers will consider an elections bill today that would provide temporary fu [...]

If the North Carolina Department of Transportation's financial practices were a highway, it wou [...]

High school students in the small mountain town of Sylva have been going to extreme lengths to find [...]

Yesterday – the 75th Memorial Day since the end of World War II (and the first in more than century [...]

The post Hark the sound of childhood hunger appeared first on NC Policy Watch. [...]

We’ve known for a long time that former President Barack Obama lives rent-free inside Donald Trump’s [...]

Ask a public education advocate when our society began doubting and undervaluing public schools and [...]