the laffer curves suggests that if you lower taxes you increase government revenues to a point by increasing the tax base. So far every tax cut has resulted in an increase in the total revenues collected. we have not come to the point of dimishing returns for cutting taxes.

the real problem right now –to governments — is that they are taking risks. they want/need/have to get private enterprise to take the risks.

to do so the government needs to increase the compensation for risk taking by lowering the capital gains tax to as low as it will go.

the china and singapore currently have zero 0 capital gains tax. this may be the secret reason their economies flourish.