Tax Cuts
Spectacular!
Tax cut proponents proclaim that Laffer laughs last, again as tax cuts bring in more revenue than old tax rates.
Take that, "nonpartisan" CBO!
As I have documented many times in the past, lower rates can lead to greater revenue. Anyone who has managed a cost-efficient business knows that lowering your prices can lead to increased business activity which leads to greater profits. It works the same way with taxes!
At the time of the tax cuts the CBO was "scoring" the tax cuts as "costing" the US treasury $27 billion over the 2004-5 budget cycles. Instead, the tax cuts have ramped up the economy and revenues increased by $26 billion, or almost 100% in the other direction!
Those are the estimates. Now let's see how things really turned out. Take a look at table 4-4 on page 92 of the Budget and Economic Outlook released yesterday. You'll see that actual liabilities from capital gains taxes were $71 billion in 2004, and $80 billion in 2005, for a two-year total of $151 billion. Instead of costing the government $27 billion in revenues, the tax cuts earned the government $26 billion extra.
Opponents of tax cuts keep getting it all wrong, but since their real goal is to control as much of your income as possible, they will never admit it!
Tax cut proponents proclaim that Laffer laughs last, again as tax cuts bring in more revenue than old tax rates.
Take that, "nonpartisan" CBO!
As I have documented many times in the past, lower rates can lead to greater revenue. Anyone who has managed a cost-efficient business knows that lowering your prices can lead to increased business activity which leads to greater profits. It works the same way with taxes!
At the time of the tax cuts the CBO was "scoring" the tax cuts as "costing" the US treasury $27 billion over the 2004-5 budget cycles. Instead, the tax cuts have ramped up the economy and revenues increased by $26 billion, or almost 100% in the other direction!
Those are the estimates. Now let's see how things really turned out. Take a look at table 4-4 on page 92 of the Budget and Economic Outlook released yesterday. You'll see that actual liabilities from capital gains taxes were $71 billion in 2004, and $80 billion in 2005, for a two-year total of $151 billion. Instead of costing the government $27 billion in revenues, the tax cuts earned the government $26 billion extra.
Opponents of tax cuts keep getting it all wrong, but since their real goal is to control as much of your income as possible, they will never admit it!