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Politics : American Presidential Politics and foreign affairs

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To: American Spirit who wrote (8717)	5/18/2006 6:58:33 PM
From: TimF	Read Replies (1) of 71588

The question of whether low taxes create higher revenue than moderate taxes over the medium run is a complex question depending on a lot of factors. Some times lower taxes do indeed produce more revenue. Even when they don't the belief that they often do is honest, and even reasonable, not a "bald faced lie". But when you are talking about extremely high tax rates the idea that lowering the tax rate will produce more revenue is simple and uncontroversial. It is supported by economists of all different styles and beliefs. 100% tax rate doesn't give the government 100% of the GDP, it gives it closer to zero. 90% taxes are also way too high to maximize government revenue. If Bush's tax cuts are creating such great revenues Do you even read what I write or are you just programed to search for keywords and respond with Democratic Party talking points? I said that 90% tax rates reduce government revenue compared to more reasonable rights. I didn't assert that a cut from something like the high 30s to the mid 30s produces more revenue. It does in the long run but Bush's presidency doesn't amount to "the long run". If you don't collect a piece from those making the big profits, your government goes broke. And if you try to take 90% then you don't collect this piece. People make extraordinary efforts to avoid the tax, ranging from just straight not paying it and making the IRS try to forcibly collect from everyone, to bribing tax officials, to hiding their income, to moving overseas. Even if the taxpayers can't get away from the tax collectors, they will make much less effort to generate wealth and income if they don't get to keep it. In any case even with Bush's minor reduction in the top income tax brackets, or with Reagan's even lower top income tax rates, the government does collect quite a big piece from those making the big profits.

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