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

To: combjelly who wrote (511770)	9/9/2009 5:08:58 PM
From: i-node	Respond to of 1579026

"We know historically, that when tax rates get into the 70s, then you cut tax rates into the below-50s, we see an INCREASE in tax collections." But is it enough to offset the revenue decrease? Yes. To clarify, when I say "revenue increase", we're talking about the NET increase in revenue due to tax collections. Again, it has been remarkably consistent. When Reagan cut taxes we saw revenue go UP. And we know what tax rates were involved there. The same is true of JFK's tax cuts. Many people were absolutely astounded after the JFK cuts that total revenue increased. Why? Because the economy surged. This is well known. Adam Smith even, in his day, recognized that increased taxes could result in diminished revenue and wrote that in Wealth of Nations. The same is true of Keynes as well. It is basic economics.