Trump May End Income Taxes; Art Laffer On Next Economic Revolution

Summary

David Lin interviews economist Arthur Laffer on supply-side economics, affordability, tax policy, and the outlook for the US economy. Laffer supports income-tax elimination funded by tariffs, payroll-tax cuts, a 15% flat tax, and Florida property-tax reform. He discusses AI and cryptocurrencies as productivity-enhancing innovations, stablecoins' impact on Treasury demand, the UK's tax burden, and the Fed. The conversation is mostly macro-policy focused, with market implications for AI, crypto, T-bills, Florida housing, and UK assets.

• Laffer backs cutting or eliminating income taxes, financed partly by tariff revenue and tax-expenditure reform.
• He favors a 5-point payroll-tax cut and a possible 15% flat corporate/personal tax rate.
• Affordability is framed as a supply-side issue, with lower taxes and deregulation increasing output.
• He supports Florida's property-tax elimination, expecting higher home values and more building.
• AI and cryptocurrencies are described as productivity-enhancing innovations.
• Stablecoin and Tether adoption is seen as a new source of Treasury-bill demand.
• He is negative on the UK's high-tax path and on Mamdani-style policies in New York.
• He praises Kevin Hassett as a potential Fed chair and criticizes Fed mission creep.