The Hauser graph (the Laffer Curve in disguise) IS a good example of poorly conceived supply-side econ. As some of you may guess, I believe supply side economics is about corporatism and the more fascist components of capitalism, not about beneficial and applicable economic theory.
Quote:
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"Raising taxes encourages taxpayers to shift, hide and underreport income. . . . Higher taxes reduce the incentives to work, produce, invest and save, thereby dampening overall economic activity and job creation."
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The genie is already out of the bottle, and some individuals will continue to shift, hide and underreport, but of taxes are decreased they will be keeping even more. The idea of "if taxes on the rich decrease they'll magically become honest" is the worst kind of naïveté and speaks in volumes of the failures inherent in supply side.
The worst part, though, is that most of the idiots pushing ideas like the Laffer Curve don't even understand it (yes, I'm talking about Bush, Cheney and Santorum). Here's a question:
Did Reagan's tax cuts in the 1980s on the left side of the peak increase receipts?