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Reagan adviser Arthur Laffer backs VAT cut call

27 June 2012 Last updated at 11:40 BST

Labour's proposed VAT cut has received the backing of a former adviser to US President Ronald Reagan - the inventor of the "Laffer Curve".

Arthur Laffer claimed the UK's 20% level was a "disincentive for people to work, produce and create output" and he was surprised at British tax levels.

Watch the full interview: Arthur Laffer and Andrew Neil

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