Arthur Laffer a convert on Bush's Economic Policies

Arthur Laffer, one of the truly great minds of supply-side economics, had a great post in the WSJ this morning. He describes today's ecnomic climate:

"The 10-year T-note yield is at 4% and inflation is nowhere to be found. Productivity is high and unemployment, at 5.2%, is low and falling. Tax rates on capital are at the lowest levels in my lifetime and markets are more transparent than they ever have been.

To make sure these trends don't stop, President Bush is proposing: (i) making his 2001 and 2003 tax cuts permanent; (ii) taking the second step towards the elimination of the double taxation of corporate capital; (iii) accelerating to the present and making permanent the abolition of the federal death tax; (iv) consolidating a hodgepodge of tax-free savings accounts into one lifetime savings account; and (v) moving aggressively on tort reform. The only item I couldn't find in the laundry list of "to-dos" was the amelioration or elimination of the alternative minimum tax. Let's hope that was excluded simply due to someone's (perhaps my) oversight."

Indeed. All in all, some great proposals.