Laffer: Obama Picked a Losing Team

President-Elect Obama has lined up what appears to be a formidable team, including Berkshire Hathaway's (BRK.A)Warren Buffett and former Federal Reserve chairman Paul Volcker, to advise him on the economy.

Economist Arthur Laffer is not impressed.

"I know Paul Volcker very, very well. He was the best Fed chairman ever. Just wonderful," says Laffer in a conversation with TheStreet.com. "Without him, the Reagan revolution never would have occurred. But on fiscal policy, he's not so good."

As for Buffett, and the rest of Obama's economic gurus, Laffer is equally skeptical, especially when it comes to their plans to raise taxes.

"You can't raise taxes on the rich. These people know how to get around taxes," says Laffer. "Warren Buffett pays no taxes because all of his wealth is in unrealized capital gains. There's no tax on unrealized capital gains, so how do you get it? You have to tax poor people."

Laffer makes his case against Obama's tax plan in his new book The End of Prosperity --How Higher Taxes Will Doom The Economy -- If We Let It Happen. And while he is forever linked to Ronald Reagan through the curve which bears his name, Laffer says his book isn't political. In fact, he voted for Bill Clinton twice.

"There is a chance that Obama could very much do a Clinton and flip and become one of the best presidents ever," says Laffer. "He's got all the resources, all the abilities to do something like that. I don't think it's going to happen. But wow, you would see a great economy."