Will 2011 Tax Hikes Cause Financial Disaster? Arthur Laffer Answers …

Economist and former Reagan Economic Adviser Art Laffer argues 2011 tax hikes will cause financial disaster.

The Coming Tax Hikes — As of January 1, 2011

Highest federal personal income tax rate rises to 39.6%

Highest federal dividend tax rate rises to 39.6%

Capital gains tax rate hits 20%

Estate tax rate soars to 55%

Arthur Betz Laffer (born August 14, 1940) is an American supply-side economist who became influential during the Reagan administration as a member of Reagan’s Economic Policy Advisory Board (1981–1989). Laffer is also known for the Laffer curve, an illustration of tax elasticity which asserts that, in certain situations, a decrease in tax rates could result in an increase in tax revenues.

In 2009 Laffer said on CNN: “If you like the post office and the Department of Motor Vehicles and you think they’re run well, just wait till you see Medicare, Medicaid and health care done by the government.”