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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (362900)	12/15/2007 1:22:38 PM
From: bentway	Read Replies (1) \| Respond to of 1576160

Why don't we just take taxes down to zero? Wouldn't that produce the MOST revenue? Obviously that's nuts. So, given that it's nuts, what's the "sweet spot" that produces the most revenue? You can't JUST judge it by revenue, since there are many other factors in a dynamic economy that play into it. It's a calculation like that used to determine the optimum price for a product. Too low, and you're giving away profits. Too high, and you sacrifice sales. In the middle is the right price that produces the maximum profit. When Kennedy cut rates, our highest rate was 91%! It raised revenues. When Reagan cut rates, it lost revenues, and he had to raise taxes. Bush I had to raise taxes again. Clinton had to raise taxes again. The thing is, NOBODY like to pay taxes, so the free-lunch argument, cutting taxes raises revenues, will sell to the stupid forever.