The Occasional Observer

1 comments:

SheaHeyKid said...

This article in WSJ I had posted a while back has an awesome plot. It shows that US tax revenue as a % of GDP has been flat at ~20% over the last 60 years, regardless of the top personal tax rate. So if Obama raises tax rates, it will NOT raise US tax revenue. In fact, quite the contrary, since lower tax rates generally result in higher GDP, which in turn would raise the US tax revenue.

US needs to focus on cost cutting, not raising taxes. Leave personal and capital gains rates where they are; lower corporate rates that are relatively high compared to world; and cut spending.

6/20/2008 2:58 PM