Two remarkable events occurred this week in history that most overlook…many Americans don’t realize the impact these events have on their everyday lives!
First, this Tuesday is the 38th anniversary of President Ronald Reagan signing the largest tax cut in United States history at his beloved Rancho del Cielo. The man who helped inspire this policy, Dr. Art Laffer, celebrates his 79th birthday the very next day.
Who exactly is Art Laffer? Dr. Laffer was born on August 14, 1940 in Youngstown, Ohio. He earned his Bachelor’s degree in Economics from Yale University before earning both an MBA and a PhD in economics from Stanford University. After getting his doctorate, Dr. Laffer became a professor first at the University of Chicago, then the University of Southern California, and then Pepperdine University. In 1974, he met with officials and discussed the concept that would become known as the Laffer Curve. The Laffer Curve states that after a certain tax rate is reached, increasing the tax rate further actually reduces the amount of revenue the government receives. Due to this curve Dr. Laffer would become known the Father of Supply-Side Economics.
In the 1980’s, Dr. Laffer served on President Reagan’s Economic Policy Advisory Board, during which time he helped craft the famous 1981 tax cut, the Economic Recovery Tax Act, that would help spur American growth. After President Reagan signed the tax cut into law at Rancho del Cielo, the United States experienced an economic boom. It left behind the malaise and stagflation of the 1970’s and took off on one of the greatest periods of growth in American history.
For his work in economics and promoting free enterprise, Dr. Laffer was honored with the Presidential Medal of Freedom by President Trump earlier this year. YAF wishes to thank Dr. Laffer for everything that he has done to advance the cause of economic freedom and wish him a very happy birthday!