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To: eraser2005

A tax rate reduction should mean a tax revenue increase.

If the DUmmies want more money to spend, then a rate reduction should produce more tax revenue.

This is why the Laffer Curve is so powerful.

It explains that...

"If you tax people who work and you pay people who don’t work, do not be surprised if you find a lot of people choosing not to work."


13 posted on 12/16/2005 10:19:59 AM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76
A tax rate reduction should mean a tax revenue increase.

True - IF, and only IF, you are on the correct portion of the laffer curve. Are you certain we are on the right side of the curve? Estimates for the "optimal" rate vary wildly - up to 80%, even. If you cut them too steeply without cutting spending, then you'll rack up enormous deficits as the efficiencies gained in the tax system won't be able to catch up to the initial loss in revenue. In 4 years spending has increased 32.7%, and revenues have only increased 7.6%, not even equal to the rate of inflation. The on-budget deficit is still near $500 billion. That's pathetic.
16 posted on 12/16/2005 12:20:03 PM PST by eraser2005
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