Democratic presidents Woodrow Wilson and John F. Kennedy spoke plainly about the fact that higher tax rates on individuals and businesses did not automatically translate into higher tax revenues for the government. Beyond some point, high tax rates on those with high incomes simply led to those incomes being invested in tax-free bonds, with the revenue from those bonds being completely lost to the government -- and the investments lost...
Excellent analysis. I particularly like the last statement: "Today, the uncertainties generated by an activist and anti-business administration probably have more of a chilling effect on investments than the tax rate does." Extreme regulation is a very large factor in our current economic woes. Lowering taxes can be expected to increase revenues only if we also reduce the intrusions of government into our lives.
There was a time when Democrats and Republicans alike could talk sense about tax rates, in terms of what is best for the economy, without demagoguery about "tax cuts for the rich."
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