Monday, August 03, 2009

The supply side is dead?

This afternoon I had the displeasure of getting my haircut in a place where the guy was watching Fox News. I should have had the backbone to tell him I wouldn't let him cut my hair and walk out, but I wanted it shorter.

So I was watching the Neil Cavuto show, and he was all bent out of shape -- among other things -- about Geithner and Summers getting on the talk shows yesterday morning and hinting at raising taxes on the middle class. And he brings on Governor George Allen, a Virginia Republican, who says: "the only way to pay down these big deficits is by raising taxes."

Hmmm. Since the age of the great Arthur Laffer, the Republicans have been the party of the supply side. He're a not so ancient quote from our buddy McCain: "Don’t listen to this siren song about cutting taxes. Every time in history we have raised taxes it has cut revenues." — McCain, [1/17/08]. So Allen should be arguing that raising taxes will make budget deficits worse. But somebody handed him the wrong script, I reckon.

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