With the tax cuts of Ronald Reagan & George W Bush, did tax revenues go up or down after the tax cuts?
07.December, 2009
There are 3 terms you learn in economics 101. One states that by lowing the price you actually increase total revenues. One states that by lowering the price your total revenues will decrease. The last one states that by lowering the price your total revenues stays the same.
Ronald Reagan didn’t lower the tax rates for fun. He had an economic theory behind it and it does not state that "lowering tax rates always increases tax revenue". That is a misconception by people who don’t understand the theory behind it. Reagan’s tax policy was based on the Laffer curve. I encourage you to look it up. If you lower taxes past a certain point you will lose tax revenue. Also when you are evaluating where you are on the Laffer curve you would not simply pick periods of high economic activity, but ones of lower economic activity as well.
07.December, 2009 um 8:43 am
Tax revenues went way up, the GNP improved, the unemployment dropped. The liberals never get this simple message. Next year the Bush tax cuts will be reversed and you will see revenue fall again. happens when they win.
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Lived through a bunch of them
07.December, 2009 um 9:30 am
Down but conservative will argue that the economy went up every year when only loan demand went up which is what creates money.
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07.December, 2009 um 9:42 am
They went up dramatically.
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07.December, 2009 um 10:10 am
UP
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07.December, 2009 um 10:33 am
Ronald Reagan didn’t lower the tax rates for fun. He had an economic theory behind it and it does not state that "lowering tax rates always increases tax revenue". That is a misconception by people who don’t understand the theory behind it. Reagan’s tax policy was based on the Laffer curve. I encourage you to look it up. If you lower taxes past a certain point you will lose tax revenue. Also when you are evaluating where you are on the Laffer curve you would not simply pick periods of high economic activity, but ones of lower economic activity as well.
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07.December, 2009 um 11:12 am
From what I am learning cutting the tax rate promotes business growth causing more job growth which history shows creates a broader tax base due to the taxes being paid by people who ARE ACTUALLY EMPLOYED—-we need to look at history to avoid the pitfalls of civilizations who met their waterloo by making the same mistakes.——you can’t be taxed when you are not earning money—not that hard even for liberals to understand.
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07.December, 2009 um 11:21 am
They went up after Reagan and down after Bush’s. They are still down and the Bush tax cuts are still in effect.
It was more likely that the it was not the Reagan tax cuts that increased tax revenues but the decrease in government regulation.
There are 2 tax rates that produce the same revenue. It is easy to see that 100% taxation and zero % taxation produce the same amount of Revenue. The same is true about all tax rates in between. It is a belled curve called the Laffer Curve.
There are also 2 levels of regulation that produce the same tax revenue. 100% and zero% regulation both produce almost no economy and no revenue.
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http://books.google.com/books?id=nALO2-D8RFoC&dq=the+way+the+world+works&printsec=frontcover&source=bl&ots=Lhqzhr45pm&sig=NeTYf7urMWIiIS728t5ABXP3og8&hl=en&ei=7KkUS9GVO4-0tgftoaznBA&sa=X&oi=book_result&ct=result&resnum=2&ved=0CAwQ6AEwAQ#v=onepage&q=&f=false
07.December, 2009 um 12:05 pm
tax revenue went up in each case.
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