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voodoo eco·nom·ics

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n..

an economic hypothesis, proposed by President Ronald Regan, that large cuts in tax rates would so stimulate the economy that the tax revenue on the increases in business and personal income would offset the anticipated tax revenue losses, so that such tax cuts would not increasing the federal budget deficit. Its believers do not consider the actual massive deficit increases subsequent to the 1982-83 tax cut as being caused by the tax cut itself, but by other governmental policies. This hypothesis was graphically illustrated by the Laffer curve.

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vonny, vons, vontobel, voodoo, vora, voracious, voracity, vorce, vore

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