Econ Prof Don Boudreaux, blogging at Cafehayek.com, sheds commonsense onto this entirely fallacious statement made by the President to Steve Kroft on Sunday's 60 Minutes;
Agreed. Kennedy had it right, but so did Coolidge, Reagan, and G.W. Bush. Lowering marginal income tax rates led to an increase in federal government revenues in all cases.
The most dramatic case came during the Reagan era. Tax rates were lowered from a high of 70% to a high of 28%. Between 1980 and 1990 federal government revenues doubled.
Supply side economics works. Lowering marginal income tax rates does not cause deficits, spending does.
Agreed. Kennedy had it right, but so did Coolidge, Reagan, and G.W. Bush. Lowering marginal income tax rates led to an increase in federal government revenues in all cases.
ReplyDeleteThe most dramatic case came during the Reagan era. Tax rates were lowered from a high of 70% to a high of 28%. Between 1980 and 1990 federal government revenues doubled.
Supply side economics works. Lowering marginal income tax rates does not cause deficits, spending does.
Thanks for the great blog post.
"Lowering marginal income tax rates does not cause deficits, spending does."
ReplyDeleteAbsolutely!!