I think that it is pretty amazing that conservatives are still pushing the craziness that is the idea that tax cuts create more tax revenue. It is amazing that many Americans have jumped on this train. It is exactly like my telling you that you can eat all of the ice cream that you want and not gain any weight. It is that crazy.
Let’s look at this slowly. If I cut taxes, that will reflectively increase tax revenue? So in theory if you keep cutting taxes to zero that would maximize tax revenue? Really? That doesn’t make any sense.
Let’s look at the Bureau for Economic Analysis’ data. Conservatives hold up Reagan as the great tax cutter. So let’s look at tax revenues from his great tax cut.
Wow. It looks as if revenues decreased after Reagan’s great tax cut and never returned to their previous level. I’m just saying… this idea that you can cut taxes and increase revenue may happen at some time in the future, somewhere in the universe. It just hasn’t happened in the US during the last 40 years.