According to a 2012 IGM panel (cf. reference below), most experts believe that a federal income tax cut would lead to a higher GDP in five years, ceteris paribus. Is this effect purely Keynesian, and based on a presumption that the U.S. was still recovering from the recession and that greater fiscal stimulus was called for, or does it truly reflect a belief among the majority of mainstream economists that the U.S. federal tax regime is sitting on the wrong side of the Laffer curve as the title indicates?Source: http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_2irlrss5UC27YXi
I think you may be reading these results incorrectly. This survey shows that most experts on the panel either were uncertain or disagreed that a tax cut would raise GDP; less than half believed GDP would increase. On the Laffer curve question about a tax cut raising GDP enough so that tax revenues would actually increase, most disagreed or strongly disagreed; nobody agreed that the U.S. was on the “wrong” (high) side of the Laffer curve. Data has consistently shown that the U.S. is not on the high-side of the Laffer curve (see the most recent State experiment in Kansas.)
