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

A win for seniors and the home health workers who take care of them

Sometimes good news is buried in the fine ...

Top Stories from NCPW

  • News
  • Commentary

The good news is that the levels of GenX in Wilmington’s drinking water is testing consistently belo [...]

This week NC Child and the NC Institute of Medicine release the 2018 Child Health Report Card, an an [...]

North Carolina’s public school system is one of the lowest funded in the nation when adjusted for co [...]

Last week, a teenager in Florida opened fire in a high school and killed 17 people. Nikolas Cruz, 19 [...]

In “Lessons on political speech, academic freedom, and university governance from the new North Caro [...]

Cracks are forming in the NRA’s death grip on American politics At some point, it’s going to happen. [...]

As the General Assembly wraps up its weirdly timed and generally ill-conceived winter session, it wo [...]

The post Dumb & Dumber & Dumbest appeared first on NC Policy Watch. [...]