Politics · Spain · 22 hrs ago
Vox brings Arthur Laffer’s tax-cut argument into Spain’s election debate
At a Vox congress in Spain in September, economist Arthur Laffer was a guest as an election campaign approached.
More recently, Vox leader Santiago Abascal pointed to the Laffer curve as a guide to tax policy.
The curve says tax revenue is zero when tax rates are zero and also when rates are 100%, so there must be a point between them where revenue is highest.
A tax cut would raise revenue only if a country were on the part of the curve beyond that peak, where lower rates bring in more money.
The piece says most economists do not think tax cuts increase revenue in current conditions; it cites a survey in which no economists expected higher revenue and about one-third expected higher economic output.
A study cited in the debate found that, in Europe, a one-point cut in labour taxes pays for only 54% of itself, with the rest lost in revenue.
Arthur Laffer appeared at a Vox congress in September as Spain’s election campaign approached.
Vox leader Santiago Abascal has cited Laffer and his curve as a model for tax policy.
The article argues that the curve’s basic logic does not show that tax cuts will raise revenue in practice.
It says a study often cited by supporters found that, in Europe, a one-point cut in labour tax would finance itself only 54%.
- Who
- Arthur Laffer, Vox leader Santiago Abascal and Vox.
- What
- Laffer’s tax-cut argument has entered Spain’s election debate. The article challenges the claim that tax cuts can raise government revenue.
- When
- Laffer attended a Vox congress in September. The article was published on October 29, 2026.
- Where
- Spain. Laffer attended the Vox congress; the article does not state where it was held.
- Why
- Vox has used Laffer’s curve as a model for fiscal policy. The article examines whether tax cuts can increase revenue.
Vox and Laffer’s tax-cut argument
The article’s critical view
Tax cuts and revenue
Vox and Laffer’s tax-cut argument
The curve allows for tax cuts to raise revenue when tax rates are at a particular point.
The article’s critical view
The curve’s basic logic does not show that a tax cut will raise revenue in practice.
Economic effects
Vox and Laffer’s tax-cut argument
Lower taxes can encourage economic activity.
The article’s critical view
Encouraging activity does not mean the tax cut will pay for itself.
Arthur Laffer appeared as a guest at a Vox congress as the election campaign approached.
Santiago Abascal again cited Arthur Laffer and his curve as a model for fiscal policy.
El País published its article criticizing claims that tax cuts would raise revenue.
- Vox congress
- Arthur Laffer appeared as a guest in September
- Vox leader
- Santiago Abascal
- European labour-tax estimate
- A one-point cut would finance itself only 54%, according to a study cited in the article
- Article publication
- October 29, 2026
What people are saying
Laffer only said an obvious thing: that revenue must be a function that starts at zero if taxes are zero and returns to zero if taxes are 100%.
This is simple mathematics, and it is far from being any economic theory.