Hennessy's View

Domine, non sum dignus

Bush Policies Balancing Budget

The White House announced yesterday that the 2008 budget deficit would be smaller than originally projected, as will the 2007 deficit. The reasons: 1) the economy is strong and 2) tax cuts stimulate taxable economic activity. We’ve know that that tax cuts increase federal revenue (to a point) since John F. Kennedy explained it in 1961. The Laffer Curve was the final word on the subject and should have earned Arthur Laffer the Nobel Prize for economics. Read more →