joefromchicago wrote:flaja wrote:Before Joe had asked his "question" I had already said that tax cuts lead to higher tax revenue and said that no one has ever been able to document otherwise regarding the Reagan or the Bush tax cuts. So far such documentation has yet to be produced.
No, you asked:
If anyone can produce documentation that tax revenue after either Reagan or Bush's tax cuts went [b]down[/b], they've yet to produce it no matter how often they are asked to do so.
I just provided that documentation --
again. So it should be really, really easy for you now to answer my question.
You did not provide documentation showing that tax revenue goes down in consequence of a tax cut. When all else is equal and when given enough time to take effect a tax cut always leads to greater tax revenue.
Reagan's tax cuts were passed (but not totally implemented) just before a recession began. Once they had been fully implemented, tax revenue went up.
Bush's tax cuts were passed (but not totally implemented) just prior to 9-11. Once the bulk of Bush's tax cuts were fully implemented, tax revenue went up.
You are asking me to admit that government revenue went down right after tax cuts were implemented, when you are failing to take into consideration that government revenue went down
before either the Reagan or Bush tax cuts were fully in place. Delaying tax cuts has the effect of making people avoid income until the lower tax rates apply. If you had a house in 1981 and wanted to sell it and your tax rate was going to decline every year for 3 years, why would you sell it in 1981 or 1982 when your tax rate on the profit from the sale was going to be at its lowest level in 1983? You would wait until you could maximize your after-tax income before you would bother to earn the income. But once everyone could maximize their after tax income, people will go out of their way to earn income and tax revenue goes up. Once the Reagan tax cuts were fully implemented, tax revenue went up. Revenue for 1981 and 1982 did not fully reflect Reagan's tax cuts.