Marketplace Fairness Act – The Laffer Report and Intellectual Dishonesty by Proponents

MFA and North Carolina Laffer report

MFA and North Carolina Laffer report

To say that the people touting the Art Laffer report are intellectually dishonest would be too kind.  Proponents of the Marketplace Fairness Act like The Marketplace Fairness Coalition and Stand with Main Street are now sharing infographics for each state, talking about how many jobs would be created by this new tax over 10 years.

Even if you even believe the layers of assumptions and the wonderful ways any small change extrapolated out over a long enough time frame look impressive, for most states the exact opposite would be true according to Laffer’s own beliefs and models.  Laffer’s own study warns about the perils of not reducing taxes:

  • “states should not use an expansion of the total sales tax base as an excuse to raise the overall tax burden”
  • “broadening the tax base, should not be used to justify an expansion of the size of government”
  • “Of course, if states squander this once-in-a-lifetime opportunity on anti-growth policies, they should not expect the same benefits from taxing Internet retail sales as those states that use the revenue wisely to lower rates.”

Yet that’s exactly what’s happening.  The MFA doesn’t require a tax reduction and only a couple states have indicated interest in that approach.  So what does that mean?

It means that the MFA will lead to the opposite effect, job losses and economic harm for the vast majority of states according to Laffer’s own theories.

Meanwhile, from this report comes a steady stream of pro-MFA propaganda from those who either don’t actually understand, or who willingly mislead to forward their agenda (or those who are PAID to forward this deliberately misleading message).  One of the authors, Donna Arduin, has shotgunned out the same editorial to any paper that will run it, just changing the name of the state and the name of the governor as needed.  The “if additional revenue is used wisely” is of course barely covered.

 

 

Trackbacks

  1. […] of what proponents claim: It will destroy jobs and hurt the economy. They also expose the blatant intellectual dishonesty of the Stand With Main Street front group regarding this issue. It is an informative and important read. As for Stand With Main Street […]

Speak Your Mind

*


*