When great powers fade, as they inevitably must, it's normally for one of two reasons. Some powers exhaust themselves through overreach abroad, underinvestment at home, or a mixture of the two. This was the case for the Soviet Union. Other powers lose their privileged position with the emergence of new, stronger powers.
Arthur Laffer's idea, that lowering taxes could increase revenues, was logically correct. If tax rates are high enough, then people will go to such lengths to avoid them that cutting taxes can increase revenues. What he was wrong about was in thinking that income tax rates were already so high in the 1970s that cutting them would raise revenues.
If there is one thing that most economists agree about in the realm of tax policy, it is that it's best to broaden the base of any tax, all else being equal. That means minimizing the number of deductions and exclusions from taxable income in order to lower marginal rates and reduce distortions.