Arthur Laffer on VAT, taxes, prosperity and the economy

Help

A former adviser to President Ronald Reagan, and the inventor of the "Laffer Curve", claims lower taxes - and the same tax rate for all - would bring in more money for the government and create prosperity.

In an extended interview with Andrew Neil at the Institute of Economic Affairs, Arthur Laffer said the government should cut VAT and claimed the UK's 20% level was a "disincentive for people to work, produce and create output".

He claimed lower capital gains tax in the US brought in more money.

He also suggested politicians should be paid on commission, with them receiving more more money if the unemployment rate fell, before praising the economic policies of Ronald Reagen, Margaret Thatcher, Tony Blair and Bill Clinton.

MORE FROM THE DAILY POLITICS

More clips and news on our BBC website; 'like' us on Facebook; follow us on Twitter

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.