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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (107393)	7/9/2011 8:58:53 PM
From: TimF	2 Recommendations Respond to of 224757

Do you mean a few hundred billion times 8? No. A few hundred billion total might be an underestimate, but its very unlikely to be that much per year. You can't just say "tax rates increased by x% therefore we have x% more revenue. Partially this is because changes are not just changes in rates, and also different levels of income have their rates increased by different amounts. But more than that its because when you increase tax rates, you reduce economic activity and growth (to lower than it would otherwise be, which doesn't mean you can't have solid growth after that reduction), and you increase tax avoidance and tax evasion. So the actual revenue increase is smaller, typically much smaller, than what static analysis would suggest.