Thread: PA budget
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Old 03-10-2011, 07:46 PM   #31
Undertoad
Radical Centrist
 
Join Date: Jan 2001
Location: Cottage of Prussia
Posts: 31,423
It's more like an economic truism: at some point, higher tax rates lead to lower tax revenues.

Some people do not see a need to make all that money if they are going to turn over more than half of it. Other people simply go where the money can be made more easily, which is more possible than ever on our flat earth. The loss of this activity leads to less investment, in turn fewer jobs, and eventually even brain drain as smart people start to emigrate. Then there is less money to tax, and tax revenues fall.

To really get higher tax revenues, what you want is maximum economic growth. Clinton did not really raise taxes much to rid us of the Reagan/Bush deficits. Growing the economy solved the deficit as it floated all boats.
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