In response to:

Prophets and Losses: Part II

MatthewlovesAyn Wrote: Feb 06, 2013 10:04 AM
Dr. Sowell wasn't kidding about the DMV. I my state, they raised the fees for vanity plates and guess what? The revenues fell. Imagine that. A product that no one needs goes up in price and people quit buying it.
Old Carpenter Wrote: Feb 06, 2013 5:33 PM
In Iowa, the contractor's liscense use to cost $25 every 2 years. I qualified for a no charge liscense being I have no employees but it wasn't worth the hassle, so I paid the $25. They raised the price to $50 per year. Now I get mine free.

Editor's Note: This column is part II in a series. Part I can be found here.

People on both sides of tax issues often speak of such things as a "$300 billion tax increase" or a "$500 billion tax decrease." That is fine if they are looking back at something that has already happened. But it can be sheer nonsense if they are talking about a proposed increase or decrease in the tax rate.

The government can only raise or lower the tax rate. Whether the actual tax revenues that the government will collect as a result will go up or...