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Politics : PRESIDENT GEORGE W. BUSH

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To: ZenWarrior who wrote (149260)5/28/2001 7:22:23 PM
From: willcousa  Read Replies (1) of 769670
 
You miss the economic point. Picture all innovations as a table top covered with marbles. Assume a zero tax rate. As the tax rate rises the table shakes, marbles fall off. At some tax rate the table shakes so badly all the marbles fall off. The least tax leads to the greatest amount of innovation. You could also think of this in regard to productivity as innovation leads to greater productivity. I believe that all benefit from greater productivity so that higher taxes actually constrain even government revenues in the long run.
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