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Politics : Don't Blame Me, I Voted For Kerry -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (12829)	4/6/2004 8:12:26 PM
From: Steve Dietrich	Respond to of 81568

<<Steve - you did not respond to my post. You are disappointing me.>> I didn't mean to disappoint you or dodge your point. You know from the Laffer Curve there's a sweet spot which would maximize federal revenue. I think Reagan, Clinton, and this Bush have shown where we are on that curve. As for tax increases not being linear, i agree. But tax cuts worsen the fiscal balance sheet which puts a downward pressure on growth that would lessen revenue growth. So who can say which effect is stronger? The empirical data shows an opposite correlation to what you'd expect. High taxes correlate with high growth and high federal tax revenue. So i think your effect is negligible at best. And revenue fell under Reagan for two years after his tax cut. It was the fourth year when it finally returned to pre tax cut levels. Ultimately revenue did climb under Reagan but less than it did under Jimmy Carter which again argues against tax cuts being good for federal revenue. Steve Dietrich