Solución: bajar impuestos

Stephen Moore sale a la defensa de supply-side economics, que viene siendo atacada en gran forma ultimamente:

Supply-side economics is also denounced as a flim-flam whose sole purpose is to give jumbo-sized tax handouts to corporations and high-income earners. Since so many upper-income and wealthy Americans are Democrats, however, it's not clear why Republicans would be so preoccupied with helping them.

In any case, the share of taxes paid by the top 1% and 5% income earners has consistently risen from 1980 through 2007, even as tax rates declined. Today the highest income tax rate is half what it was in the 1970s. Yet the share of taxes paid by the top 1% of income earners is twice (39%) today what it was then (19%).

Regardless of what one believes about the distributional effects of the Reagan and Bush tax cuts, there's no expunging the reality that the economic growth rate surged after each of these changes--just as they did in the 1960s after President Kennedy's tax rate cuts. Robert Rubin and others reply that the economy boomed in the 1990s too, after Bill Clinton raised taxes. But supply-siders never argued that only tax cuts matter. Trade matters. Sound money matters. Regulations matter. In the 1990s, monetary, trade and spending policies were all leaning in a pro-growth direction, possibly offsetting the negative impact of the Clinton tax rate hikes.

What the critics have no plausible answer for is this: If the supply-side tax rate reduction model is truly so abhorrent, why are so many nations around the world latching on to it? What explains the Irish Miracle? Why are Germany, France and the U.K. slashing their corporate tax rates? Why are there 18 countries with flat taxes? Are their leaders deranged, or been bamboozled by crackpots? Perhaps a better explanation is that they know intuitively what a new National Bureau of Economic Research study has found: Nations with low tax rates on business have statistically significant higher rates of new business formation, investment and income.