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To: Brian S. Fitzgerald; avacado
It may not be a question of wanting to raise taxes, but having to raise them. Just a thought.

It is the tax RATE that gets raised and lowered. Often increasing the tax rate leads to collecting less tax revenue. Reagan's drop in tax rates led to massive increases in tax revenue. If people only understood this, conservative ideas would spread. We need to use the correct terminology and say tax RATE when we mean it. It is similar to saying health care when it is health insurance that is meant.

In Maryland, Gov. O'Malley called a special session last fall to railroad through a sales tax rate increase from 5% to 6%. Well, tax revenue for the first six months is flat. Since the rate was increased 20% but the amount of taxes collected was the same, this means that Maryland lost a lot of sales to other jurisdictions or to simply not buying. This is bad for Maryland businesses, but liberal leaders don't get their big votes from entrepreneurs.

145 posted on 09/18/2008 6:18:02 AM PDT by Freee-dame
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To: Freee-dame
"It is the tax RATE that gets raised and lowered. Often increasing the tax rate leads to collecting less tax revenue. Reagan's drop in tax rates led to massive increases in tax revenue. If people only understood this, conservative ideas would spread."

Bush's tax cuts of lower income tax rates increased federal revenue 47% from 2003 to 2006. From about $1.7 trillion per year to $2.5 trillion per year.

147 posted on 09/18/2008 6:31:17 AM PDT by avacado
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