Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Because even the Laffer Curve points out that at a certain point, revenues actually decline with the tax rate. It might be better to raise tax rates, they can always be cut again later. But the law of diminishing returns kicks in once you cut them too much.
Yes this. Honestly we went too far cutting taxes with the Bush Tax Cuts -- the theory that the money the government was missing out on would be reinvested just did not play out. Now far-right pundits are saying the rich cannot have their taxes raised because then they will not create jobs -- they're already not creating jobs!!! Corporate profits are at an all time high, they have no vested interest in ending the recession.
We need to raise their taxes. The recovery has stalled out so it's obvious we cannot trust private enterprise to create jobs. We need the government to do it.
If only tax cuts increase revenue then we should be rolling in the dough compared to even 40 years ago.
Oh wait, our deficit didn't start really raising till we started slashing taxes (especially for the wealthy) during the Reagan years with supply side economics. Now we are even lower, and revenues have decreased and we are spending into deficits just to keep the lights on.
Oh wait, how about seriously looking at revenue before and after the tax cuts. After falling one or two years following economic downturns, revenue increase in spite of both Reagan and Bush tax cuts. Spending is the problem. Government grows when times are bad and revenues slow, and it grows when times are good and revenue increases. No matter what happens, government grows.
Government revenue also increased after the Reagan and G.W. Bush tax cuts.
We did not have the massive offshoring of jobs that we have today.
People who got layed off will not get their jobs back because someone in some foreign country is now doing it.
That's one difference between then and now that people are not considering.
The jobs today are low paying service jobs. Under-employment will NOT increase revenue.
We all know that the higher taxes are, the less productive the wealthy will be. We also know that cutting taxes increases revenue. So if we're serious about this debt problem why not cut spending AND taxes? If we cut taxes, more economic activity will take place meaning more taxable income.
Prove that.
Norway, a country with taxes endlessly higher than the US has higher productivity rates across the board and has more entrepreneurs per capita than the US and host several very successful companies, including Kongsberg Group, who recently became the sole producer of something as "American" as the Bazooka.
It also recovered from the recession, not that it was felt much in the first place.
If Norway, for some reason is too small for you (though I don't know why that would apply in this case), look at Germany, same thing.
But you do believe that tax cuts will always raise revenue, essentially agreeing with the OP? Or, do you disagree, leaving the idea open that it can potentially reduce revenue?
The US has the second highest marginal corporate tax rates in the industrialized world at 40%, but corporate income taxes as a percentage of federal revenue is twentieth at 6.7%.
With a 28% marginal corporate income tax rate, Norway nearly triples the percentage of federal revenue we get from corporate income taxes (18.9%), and with a 25% marginal corporate tax rate, Australia more than doubles it (16.8%). In fact, it's hard to find a nation that screws itself out of free money and jobs more than the US.
By lowering our extremely high marginal corporate income tax rates to a competitive level (about 25%), we could increase revenue and create some private sector jobs at the same time.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
