On last night’s Kudlow & Company we discussed supply-side apostate Bruce Bartlett’s New York Times op-ed which said it’s time to kill the phrase “supply-side economics” and give it a decent burial. Of course I completely disagree. For starters, President Bush’s tax rate reduction once again proved the growth-building and revenue-raising success of the supply-side.
The Wall Street Journal’s Steve Moore made the point that supply-side economics is not just a phenomenon particular to the United States, but a revolution sweeping all over the world. Ireland, the Eastern European countries are all moving toward low, flat taxes with tremendous success.
Mr. Moore added that getting rid of the term ’supply-side economics’ is like telling McDonald’s to change the name of their hamburger, or Google changing the name of their company. It has become a brand that’s identified with the “Gipper” and identified with successful tax policies all over the world.
The data support Moore’s argument. As I pointed out, ample historical evidence demonstrates the benefits of cutting marginal tax rates. In the ’60s, after the Kennedy tax cuts, revenues soared almost 100 percent. In the ’80s, under the Reagan tax cuts, revenues shot up 67 percent. And following the Bush tax cuts’”it’s only been three years’”revenues have risen 35 percent.
That is why I think Bartlett is misspeaking.