Musicmystery
Posts: 30259
Joined: 3/14/2005 Status: offline
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quote:
Actually, it has been proven that taxes, as in revenue, exist within a pretty set range. Lowering taxes increases economic activity. This in turn adds to available jobs which returns the taxes lost in the tax decrease. Increasing taxes is the converse. Jobs lost but revenue stays about neutral. It is possible to raise taxes enough that revenue could plunge, as money flees elsewhere. Lower taxes enough and money comes ashore seeking the better climate. Actually, it has been assumed, and proven false. The Lauffer Curve policies were based on an assumption we knew where that crest point was...and we didn't. Economic activity increased...as it is now. Jobs did not follow as predicted...just as now. The taxes on that increased income did not offset the revenue loss...just as now. In fact, the opposite of your model has transpired. Taxes have been cut and cut for twelve years, and the economy is growing only modestly, jobs are coming back only at an extremely slow pace, and revenue is not rolling in. True, if taxes were jacked up through the sky, it would chill the economy and jobs. But that's not where we are. Because people believe in the tax-cut magic money fantasy, we keep doing what doesn't work, making things worse. EVEN worse, the authors of the magic money tax-cut plan balanced the books with borrowed money---again making things continually worse.
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