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Politics : Formerly About Advanced Micro Devices
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To: Alighieri who wrote (615211)6/7/2011 12:01:01 PM
From: TimF  Read Replies (1) of 1578715
 
The recovery was slow and taxes didn't go back up, but tax income did decline with the recession, and go back up with the recovery. It decline to a greater extent with the next more severe recession, even without any additional rate cuts and before other forms of temporary cuts that did get passed.

Your point seems to be that it also declined with after the tax cut. Again I'm not disputing that point. I have posted that revenue did decline because of the tax cut multiple times (one time even showing an estimate of it, specifically as being about 60% of what static analysis would have predicted, meaning it "paid for" 40 percent of itself, for every dollar of benefit to the private sector, the federal government took a hit of 60 cents.) That 60/40 split depends on the time line. The year of the cut the reduction in revenue for each dollar of gain was probably larger than 60 cents, the extra growth occurs over time.

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Continuing your series

Individual Income Tax Revenue
2006 $1.043T
2007 $1.1 trillion
2008 $1.25 trillion
2009 $1.21 trillion
2010 $ .8985 trillion

Notice the decline without any "Bush tax cuts for the rich".

Also note that the tax cuts happened in 2001 and 2003. The "revenue drops again" year in your data is 2003 with a reduction of only $65bil, then in 2004 the increase starts again. A recession can be defined as over when the economy is no longer shrinking, but that doesn't mean its still not at a lower level then pre-recession. If the recovery is slow, its hardly a surprise that revenue is still lower until their has been time for the recovery to have some effect.
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