This is taken from Steven Moore's excellent writing. Moore is a senior economics writer for the Wall Street Journal. Full info is here:
http://www.manhattan-institute.org/html/ir_22.htm
with way more graphs and data than I can fit in here. Also, Moore has a new book out which goes into even more detail.
As J.F.Kennedy said when he cut taxes:
Quote:
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“It is a paradoxical truth that tax rates are too high today, and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the tax rates…. [A]n economy constrained by high tax rates will never produce enough revenue to balance the budget, just as it will never create enough jobs or enough profits.” —John F. Kennedy, 1963[1]
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This is from his "A Rising Tide Lifts All Boats" speech, iirc.
It IS unintuitive that it would work this way, but we know that it DOES work this way, so try to accept it.
Should we tax our rich more?
Fact: What country leans on upper income households, the most?
Some socialist country? Nope. USA does!
Code:
Australia 37%
Belgium 25%
Canada 36%
France 28%
Germany 31%
Italy 42%
Japan 29%
Sweden 27%
Switzerland 21%
United Kingdom 39%
United States 45%
All OECD Nations 32%
Source: Tax Foundation, 2011.
That's why this "Fairness" crap from Obama, drives me right up the wall. (and no, I'm NOT in the top brackets myself).
The above chart, and much more besides, is all here:
http://www.manhattan-institute.org/html/ir_22.htm
as well as several other places on the web.
Can I guarantee that cutting taxes and trimming federal spending will grow our tax base - no. But it ALWAYS has, in the past. I see no reason to believe it won't do it again.
The article I linked to is excellent, and Moore's book is even better.
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