Reagan adviser Arthur Laffer backs VAT cut call

Help

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

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.