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Originally Posted by kvmj  As in the example I gave about everybody switching to gas guzzlers, yes you could lower taxes in that case. However, if gas sales went up because more cars were on the road, no, it wouldn't work. Cutting taxes has never once increased revenue.
Cutting taxes is a pipe dream. As the dollar continues to decline, we need more of them just to pay the interest on the debt and many more just to put a dent in the principle. |
Cutting taxes have been proven to increase revenue.
The Reagan Tax Cuts: Lessons for Tax Reform
"Conclusion
The Reagan tax cuts, like similar measures enacted in the 1920s and 1960s, showed that reducing excessive tax rates stimulates growth, reduces tax avoidance, and can increase the amount and share of tax payments generated by the rich. High top tax rates can induce counterproductive behavior and suppress revenues, factors that are usually missed or understated in government static revenue analysis. Furthermore, the key assumption of static revenue analysis that economic growth is not affected by tax changes is disproved by the experience of previous tax reduction programs. There is little reason to expect static revenue analysis to evaluate the economic or distributional effects of current tax reform proposals much better than it evaluated the Reagan tax program 15 years ago."