Friday, May 23, 2008

If Tax revenue =19% of GDP Increase GDP for More Revenue

A Wall Street Journal article by Economic researcher David Ranson explains that since 1950 no matter what the tax rate, the revenue collected will be about 19.5% of the GDP. This has held true for 60 years. The issue is that since rich people are experts at making money work, and since rich people don't like to pay taxes, when the taxes go up, they figure out ways to keep from paying taxes. This often includes making less money so they can keep what they earn.

This lends support to the concept that lower taxes for the rich (not everyone, just the experts) creates a better economy for everyone. Interesting.


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