Tax RATE Cuts Work

For the uninformed, we have had tax RATE cuts recently, not tax cuts. Tax revenues, or tax receipts by the Federal Government have been skyrocketing in recent years.

For more on this common sense phenomenon, read this article.

... Ronald Reagan discovered this in 1980 when he was ridiculed by the establishment for proposing cuts in marginal tax rates as a cure for the high inflation and economic malaise of the 1970s ...

... Here we are 27 years later -- with 40 million more jobs and a nearly $50 trillion higher net worth -- yet the left intelligentsia is still obsessed with discrediting supply-side economics. In recent weeks, the New York Times, the New Yorker, the New Republic and many other liberal publications have devoted great space and attention to attacking the entire theory that lower tax rates can increase incentives for investment, saving and work....

... Nevertheless, some arguments are repeated with such regularity that they need to be addressed. One is that supply-siders dishonestly claim that tax rate cuts increase tax revenues. Now, we can argue forever whether tax revenues would have been higher or lower without the Bush 2003 tax cuts. But one stubborn fact remains: Tax receipts are up, not down, by $745 billion in four years since the 2003 tax cuts ...

Look at the increase in tax revenues here.