Laffer-curve effects might well result from a substantial cut in the corporate tax rate, which would bring money stranded abroad back home to be taxed.
Considering that quantitative easing is effectively the same as an interest rate cut below a zero bound, the yield curve is very steep even with 10-year yields just below 2%.
But the Obama Administration is only at the beginning of its economic learning curve--although it might be able to swallow a temporary cut of expatriate profits.
The yield curve was inverted early in the year, but positively sloped when the Fed first cut rates Sept. 18, and has steepened still now in the wake of the Fed's surprise rate cut Jan. 22.