Real Tax Cuts Have Curves...

Once again, those who laughed at the "laffer curve" aren't laughing now. Stephen Moore of Club For Growth lays out the numbers in this WSJ column.

Earlier this month the Congressional Budget Office released its latest report on tax revenue collections. The numbers are an eye-popping vindication of the Laffer Curve and the Bush tax cut's real economic value. Federal tax revenues surged in the first eight months of this fiscal year by $187 billion. This represents a 15.4% rise in federal tax receipts over 2004. Individual and corporate income tax receipts have exploded like a cap let off a geyser, up 30% in the two years since the tax cut. Once again, tax rate cuts have created a virtuous chain reaction of higher economic growth, more jobs, higher corporate profits, and finally more tax receipts.

It's a concept that Liberals just can't get their heads around (or refuse to): lower tax rates = higher tax revenues. Even JFK understood. When you stop penalizing success, individuals and businesses prosper and the money comes rolling in.

Hat Tip to Jayson at Polipundit

Posted by: Gary at 07:10 AM | No Comments | Add Comment
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