While lags are expected (economists speak of a J-curve effect that accounts for the process of adjustment to the new prices in both countries), a two or three year lag in an era of instant communications, cyberspace transactions, transnational production, and airtight supply chains is simply not credible.
The Laffer Curve-effect is more likely to work miracles if the highest marginal income tax rate is very high to begin with say over 50 or 60 percent and if the taxpayer has control of when to realize income for tax purposes.
For example, in an ingenious argument, he shows that the chief effect of an inverted yield curve is to shift leadership from growth companies to value firms that benefit from the free availability of bank loans.
What we're about to show you is decidedly low-tech -- it's essentially a projection screen with a sharp curve at the bottom -- but the resulting effect conveys a more realistic 3D image, for certain applications, at least.