Quote:
Originally Posted by SebC
We are nowhere near the inflection point of the Laffer curve. 
The GST cut was objectively bad in the type of tax that was cut. That is the crux of the argument. (I would go further and say that the tax cut should've also been delayed until it could've been used as a stimulus measure.) |
Indeed, and I have indicated agreement that it is always more sound to cut a lump sum tax, however many would agree that a cut in any type of tax serves to increase consumption.
Likewise, many economists of all stripes agree that Government spending should stay at about 20% of GDP. Because we are far above that point, it could be argued that we've done of the other side of the inflection point of the Laffer curve.
But I do agree that cutting GST was imperfect, but not necessarily bad either.