In November 2007 we wrote a brief blog entitled "Laffer in la-la land
" which pointed to a New Statesman article exploring the insanity (and political cunning) of an ideology built around the mythical Laffer Curve, which seems to suggest that you can cut taxes to make revenues rise. It has become an article of faith in the Republican Party in the U.S. (and sits alongside another theory that you should cut taxes to "starve the beast" - which is based on the notion that if you cut taxes, revenues will fall, not rise. Few people notice the contradiction between the two.)
Well, Martin Wolf is exploring this same issue in the Financial Times, and he reaches similar conclusions. Worth reading
- though beware: it is depressing.