duckman52 Wrote:
Dec 26, 2012 4:10 PM
The CBO uses static projections. That is why their projections are never accurate. There are two things they ignore. One would be the loss to the economy of the some $80 Billion from the tax hike. Those 70,000 jobs (one year of 700,000) come to mind. There would certainly be some revenue from those jobs to partially offset the $80 Billion. And then there is the money those 70,000 people would spend, which would also lead to some tax revenue. Second is the fact that those "rich" people might just arrange their affairs to shelter some money thereby offsetting the tax increase. These are the sort of things that static projections fail to take into account. I presume that you see the problem.