Micheal Moore in Wisconsin: "America is not broke" (user search)
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  Micheal Moore in Wisconsin: "America is not broke" (search mode)
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Author Topic: Micheal Moore in Wisconsin: "America is not broke"  (Read 1355 times)
Dgov
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Posts: 1,558
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« on: March 09, 2011, 01:53:52 AM »

The idea that lowering taxes of any sort at this point would result in more tax revenue than would've otherwise been created by increasing taxes is such a complete assault on common sense (and in the case of straight up income taxes, thoroughly debunked) that I cannot believe otherwise intelligent people like you guys would buy it.

Sure, not right away.  What i think your missing is that lowering taxes increases revenues in the long term.  A side effect of rich people getting richer is that they inevitably pay more taxes on their new-found wealth.  That's the reason why, despite the fact that Reagan sliced the top tax rates, the actual tax revenue from that top income group doubled during his presidency.

Granted, relying on high-income earners too much for you tax base poses other problems (since they lose the relative most in downturns, creating bigger cyclical deficits), but it's not like cutting the top tax rates is functionally independent from future tax revenues.
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