Laffer: Taxes should be No. 1

SARASOTA — What's the single most important thing the government can do to help the economy rebound? In a discussion with local media today, Dr. Arthur Laffer says it's something he's been preaching for years: Institute a flat tax system.

In a talk hosted by Caldwell Trust Co., Laffer shared his insights on the economy, as well as what the government should do to help the U.S. recover from the recession. Laffer is known as the father of supply-side economics, and has been an economic adviser in Washington, D.C., since the 1970s.

Laffer opined on everything from defense and deficit spending to monetary supply and inflation, but he says the top thing the U.S. should do to grow its economy is change its tax code. He advocates a flat tax rate of 12% that eliminates deductions, with the exception of charitable contributions and mortgage interest deductions.