Clinton raised taxes...the GDP grew, tax revenues grew, the economy soared, the budget balanced.
How do you explain that? These are honest questions, by the way...i'm an economic idiot. On Thu, Aug 28, 2008 at 2:19 PM, Robert Munn <[EMAIL PROTECTED]> wrote: > On Thu, Aug 28, 2008 at 11:50 AM, G wrote: > > > When tax rates go up, GOVERNMENT revenue increases > > That is demonstrably false: > > > http://online.wsj.com/article/SB121124460502305693.html?mod=opinion_main_commentaries > > Mr. Hauser uncovered the means to answer these questions definitively. > On this page in 1993, he stated that "No matter what the tax rates > have been, in postwar America tax revenues have remained at about > 19.5% of GDP." What a pity that his discovery has not been more widely > disseminated. > > The chart nearby, updating the evidence to 2007, confirms Hauser's > Law. The federal tax "yield" (revenues divided by GDP) has remained > close to 19.5%, even as the top tax bracket was brought down from 91% > to the present 35%. This is what scientists call an "independence > theorem," and it cuts the Gordian Knot of tax policy debate. > > The data show that the tax yield has been independent of marginal tax > rates over this period, but tax revenue is directly proportional to > GDP. So if we want to increase tax revenue, we need to increase GDP. > > What happens if we instead raise tax rates? Economists of all > persuasions accept that a tax rate hike will reduce GDP, in which case > Hauser's Law says it will also lower tax revenue. That's a highly > inconvenient truth for redistributive tax policy, and it flies in the > face of deeply felt beliefs about social justice. It would surely be > unpopular today with those presidential candidates who plan to raise > tax rates on the rich if they knew about it. > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;203748912;27390454;j Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:266940 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
