There’s a Computable General Equilibrium Model at the Treasury. If it were made of string and resin it wouldn’t be any less reliable, but its predictions about the cut in corporation tax are likable, so let’s quote them.
The Treasury select committee told us the computer is forecasting corporation tax going from 28 pence to 20 pence will increase GDP between 0.6 and 0.8 per cent, and will increase business investment from 2.5 per cent of some damn thing or other to 4.5 per cent.
It’s “a quiet revolution” George Osborne says, of this example of the Laffer Curve in action.
This curve is still mocked by the left. But it has an interesting pedigree.