Public budgeting revolves around two basic powers – the power to raise revenue (e.g., to tax) and the power to use the revenues raised to accomplish legitimate constitutionally authorized goals (e.g., to spend). Both of these actions have a wide range of both intended and often unintended consequences. Economic policies and political realities often arise in issues of taxing and spending policies, their influence on the economy, and the resulting impacts on jobs, incomes, living standards and relative freedom and liberty. Ronald Reagan famously employed “supply side economics” and the Laffer Curve in the national budget and budget decisions. After carefully reading this week’s reading assignments, you will conduct your own research and write a concise but thorough research paper 1) explaining and examining the Laffer Curve and a historical perspective on the balance of tax burdens and revenue generation; 2) analyzing contemporary proposals and arguments for the tax cuts in tax reform; 3) analyzing the politics of tax cut discussions in contemporary budget and tax reform issues, and 4) providing a Judeo-Christian analysis of the potential role of tax cuts in contemporary tax reform.
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