when did reagan first see the laffer curve? well reagan -- i used to have, like with you don, i used to have lunch with reagan during the 1976 to 1980 period. he would come in -- just the two of us -- and he would come in with all these paper stacks, paper clips, and ask me questions. marty anderson wrote in the book, "revolution." he remembered the day he saw and understood it. he said i just saw the pres -- i don't remember that. i remembered doing that with the president but -- politics is where the rubber hits the road. i am not held responsible for public policy. i'm this guy sitting at the dinner and i go home at night. they actually are held accountable. but they understood what i said. they understood the context in which it was done. they had to take those ideas and blend them with politics and the real world. >> it clearly had an impact on the way, at least on our side of the aisle, people began to think about economic policy and tax policy. revenues and growth. for me, it was a significant moment in my own developmen

laffer believed that tax cuts cause people to work harder.mist norman ture argued that t resul would be increased savings. every dollar of aitional saving represen an adtionalollarof capital. it is a fundamenl law of economics which has not been repealed, that t most effective way of increasing the oductivity of labor is by increasing the quantity and the quality of the capital with which it is employed. we move to the individual. my proposal is for 10% cut in the income tax across theoard not a special cut for someone while someone else-- you know rob peter and pay paul. we're all named peter today. 10%. but 10% in 1982 and anotr 10% in 1983. a 30% cu over a three-yeaperiod. but mainstream economists like nariman behravesh main sharplyritical of reagas suly-side taoposal. most peoe beevedere was some impac ofeducing mainalax rates on work efrtnd savings bumost anasis suggested that thaimctwas ma in fact,o smal at it would e kindf supp-side effects thataseing talkeabou aaf e american people wereeaor ange. ronald reagan swept to victory. his b

art laffer is next. does he support ted cruz? art laffer is next.isten to crews. >> imagine and 2017, a new president signing legislation were appealing every word of obamacare. [cheering and applause] push your enterprise and you can move the world. but to get from the old way to the new, you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps businesses move on all the possibilities of today. and stay ready for everything that is still to come. stuart: and modest gain. not that far away from 18,200 this morning. staples is a winner. ubs says get out there and by that stop. time is money. craft singles. you know, those individually packaged pieces of cheese, they have a stamp of approval by a viciousness group. one that says they are not even real cheese. not so fast. some are calling it spyware. the new chevy malibu will have a tracking system. piece of the world hold on a second what is this, a piece in the "wall street journal"'s says lifetime ban from baseball. a

deductibles this has been very hard for people to swallow and i want to emphasize one of the points art lafferade in the clip at the outset. this is really bad economic policy. this is $500 trillion in new taxes. it is $430 billion in new regulatory costs according to the folks at my shop. this has been one of the reasons our economy has grown so poorly. because we haven't been seeing people get raises they can't afford their health insurance, much less anything else. this is the root problem of as well. gerri: economic repercussions for sure. we've definitely seen that. fred, to you, ted cruz jumping into the presidential fray today. he is a fellow who wants to strip out obamacare from the roots. is this growing to be part of his platform? will this be a talking point in the election? >> well it will be a talking point for every republican candidate in the election. think we're approaching 25 separate republican presidential candidates. that's a lot. they will all be saying pretty much what ted cruz said today. they want to kill the internal revenue service. they want to get rid of obamacare.

like nobel laureate economist garry becker, mitt rom nigh's -- mitt romney's former advisor and art laffer have all called for taxing carbon. itconservative republicans who understand that people who are causing the problem can't do that with impunity. just more recently george shuttle -- i think we all know who george schultz is, the former secretary of the treasure and secretary of state under presidents nixon and ronald reagan published and op-ed in "the washington post" calling for a carbon tax. idea of a carbon tax is something that is gaining more and more support from democrats republicans, independents, people who are very worried about what is happening to our environment. so mr. president in terms of the side-by-side, i personally am strongly opposed to stro senator blunt's amendment which just looks at a tax on carbon, and i should tell you that as a coauthor along with senator boxer, with regard to a carbon tax, we put huge amounts of money into helping those families who might see higher utility bills. that's probably the main source of funding allocation. so we are aware of t