[extropy-chat] Do tax cuts really increase tax revenues?

[Mike Lorrey]

--- BillK <pharos at gmail.com> wrote:> 
> There are a few notable exceptions to the above rule: those periods
> following large tax cuts. After Reagan's income tax cuts took effect
> in 1982, real income tax collections took a long fall, despite the
> fact our economy continued to grow.
> 
> --------------------
> 
> Steve quotes tables of figures and references other reports, so he
> has some evidence for his point of view.

The fault in this analysis is that it only looks at one tax at a time.
A more detailed analysis should show that a decrease in income taxes
(particularly for those who tend to invest excess income) leads to
significant growth in capital gains tax revinues. Reductions in capital
gains tax rates have also shown increases in capital gains tax revinues
along with growth in the economy.

Saying, "so what, the economy grew" is really BS, because economies
grow because people have more money to spend and invest in productive
enterprises and personal consumption, rather than on wasteful
government programs that don't increase economic productivity or expand
the consumer economy.

Mike Lorrey
Vice-Chair, 2nd District, Libertarian Party of NH
"Necessity is the plea for every infringement of human freedom.
It is the argument of tyrants; it is the creed of slaves."
                                      -William Pitt (1759-1806) 
Blog: http://intlib.blogspot.com

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