HappySqurriel said:
Higher taxes don't necessarily translate to higher tax revenues in the long run, especially when you're talking about higher taxes at the level of a state or province. When you increase taxes you get increased revenue from those taxes, but you also get decreased revenue from individuals and companies leaving the state. Depending on what the current tax-rate differential is between your state and comparable alternatives for individuals and companies, the loss of revenue from increasing taxes can actually be greater than the increase they produced. If you're already in this position, reducing taxes can actually increase tax revenue.
Now, you were upset with the cuts he made but you don't have any idea where that money should have come from? When you look at New Jersey's budget nearly 66% of it is spending on healthcare and education. Even if you tried to protect these areas from spending cuts (in all likelyhood) the majority of spending cuts in dollar value would have to come in these areas.
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To add to this....
The maximum tax the US has ever collected, has been around 19.5% of GDP. Oddly, this is the same number they have collected every year sense WWII. We have had tax rates for the rich as high as 91%, and as low as 28%, and in those years, we collected the same taxes relative to GDP (19.5%).
Every economist on the planet will agree, if you lower taxes on the rich, you raise GDP. If tax revenue is fixed based on GDP, and your goal is more real dollars coming in the door, and not trying to make the rich pay a larger percentage of tax, you lower there taxes.
lowering taxes on the rich means more money for the states, because there is now more money to spend. That 200,000 you didn't take from him goes into hiring 5 more people, and those 5 peoples salaries get taxed, along with the food they buy at the store, and then salary of the extra checker the store need to hire to handle the extra business, and so on.
Rich people create the economy, not the government.
P.S. The first year this did not hold true, was 2009. 15% of GDP was collected. Way to even fuck that up Obama. So many people before you have tried and failed, but you succeeded. I guess when you give trillions of dollars away that don't need to be taxed, and people spend it, GDP raises, and tax revenue does not.
