“In every case over the last 60 years, major tax cuts have more than paid for themselves. In fact, every major tax cut since JFK has been followed by substantial increases in revenue, not to mention solid economic growth. Moreover, total federal revenue rose at a faster rate after each of those tax cuts than it did before them. Anyone can confirm these basic facts for themselves by checking federal budget data and economic indicators before and after major tax cuts (see, for example, Federal Budget Data,Data 360 Unemployment U.S.,and Total Economy Database). Let’s take a closer look at the results of the last four major tax cuts (and then for good measure we’ll examine the Mellon tax cuts of the 1920s).
Bush Tax Cuts: President George W. Bush’s 2003 tax cuts generated a massive increase in federal tax revenue and were followed by 52 consecutive months of economic growth. From 2004 to 2007, federal tax revenue increased by $780 billion, the largest four-year increase in American history. Total federal revenue from 2003 to 2007:
2003 — $1.78 trillion
2004 — $1.88 trillion
2005 — $2.15 trillion
2006 — $2.40 trillion
2007 — $2.56 trillion
Total federal revenue for 2008 dropped slightly, down to $2.52 trillion, because a recession started that year, but revenue was still substantially higher than it was in 2003 or 2004. During the same period, income tax revenue rose dramatically, going from $925 billion in 2003 to $1.53 trillion in 2007. As with other types of federal revenue, income tax revenue dropped slightly in 2008, down to $1.45 trillion, due to the fact that a recession began that year.”
http://www.mtgriffith.com/web_documents/taxcutfacts.htm
Great post.