Raising tax rates LOWERS tax revenues.
“Raising tax rates LOWERS tax revenues.”
Going from 0 to 1% INCREASES revenue. Likewise, going from 1% to 2% almost certainly will also increase revenue. But going from 40% to 95% will almost certainly DECREASE revenue.
So there is some tipping point regarding tax rate changes and their effect on revenue. And it also depends on which taxes. If the lower incomes bulk of a specific tax, than an increase in rates, in most cases, will raise revenue. Take the federal gas tax for example - 18.4 cents per gallon today. Increase it by $1.00, and it sure as hell will generate more revenue, FAR MORE revenue. Same for a consumption tax.
Bottom line, we COULD have paid for the goodies we demanded, but chose not to.