It’s 2012, how your inflation theory doing since 2007?
Individual income tax revenues are estimated to surpass 2007 this year. In any case, you have a very interesting theory. In an earlier post, you proudly proclaimed:
In which year were the Federal Income Tax receipts the highest ever?
2007, under the Bush Tax Cuts.
So you seem to be saying that the record revenues in 2007 were due to the Bush Tax Cuts. What happened in 2008, did the magical effect of the tax cuts expire? No, we had a financial crisis led by the crash of the housing bubble. The record revenues in 2007 were very likely pumped up by this bubble, along with inflation and population growth.
If you think that tax cuts do increase revenue, accept my challenge. Tell me any specific numbers or conclusions in my analysis of the effect of tax cuts on revenues that you disagree with. Alternately, post a link to one serious economic study that purports to show evidence of any income tax cut that has ever paid for itself.
The simple fact is that those record receipts occurred in 2007, with those tax rates in place.
There are a number of factors that drove reduced receipts in 2008, chief among them the impact of the Dem’s mortgage scheme and the bursting housing bubble.
You can keep playing your challenge by yourself.
I’m not impressed or interested.
>”show evidence of any income tax cut that has ever paid for itself”<
How does a Tax Cut, actually a Tax RATE Cut pay for itself? Last I checked it isn’t the Government’s money to begin with so what are you paying back?