RealClearMarkets - Hate the Laffer Curve? Try Woodhill's LOL......and the liberals hated "The Laffer Curve". This is even more bad news for people who think you can grow and economy with government spending. Actually..........this "Woodhill Curve" soundly decimates such concepts. From the article.............. The principle behind the Woodhill Curve can be stated as follows: "There are an infinite number of combinations of "tax take" (Federal revenues as a percent of GDP) and average annual real economic growth rate that will yield the same present value (PV) of future Federal revenues." While the shape of the Laffer Curve is a matter for speculation, it is possible to quantify the shape of the Woodhill Curve. As it happens, the results of the calculations are very bad news for liberal tax hikers, but very good news for supply-side tax cutters. Liberals (although probably not Professor Laffer himself) would argue that, in terms of the Laffer Curve, a tax cut only "pays for itself" if the revenues produced by that tax stay constant or rise in the first year. Very few tax cuts can meet this test, and it would never be possible to eliminate any tax completely if this were the criterion. Under the Woodhill Curve, a tax cut "pays for itself" if the calculated PVIH of Federal revenues after the tax cut is $387.8 trillion or higher. Completely repealing a tax is justified if doing so stimulates enough extra economic growth to compensate for the reduced tax take. As a corollary, tax increases are financially useless if they do not increase the PVIH of Federal revenues. Liberals want a permanently larger government, and want to raise taxes to pay for it. So, let's look at the point on the Woodhill Curve where the tax take is 22.3%, or 3.0 percentage points higher than the CBO's AFS. The corresponding GDP growth rate for that point is 1.99%. In other words, if this enormous tax increase (by far the largest in U.S. history) reduced long term GDP growth by just 0.12 percentage points, it would leave the government financially no better off (and the rest of the country considerably worse off). Compelling stuff.............basically lays out in simple terms how laughable liberal economic theory is = more bad news for the k00ks who are still cheering Trickle-Up Poverty Economics while the GDP and empolyment ranks continue to tank!!