How the US Government Buys Votes

[kanageddaamen]

HappySqurriel said:

In the short run (a few years) tax revenues may be impacted by tax rates, but they trend towards the average as the increase/decrease in money in the economy has its impact on spending and investment.

Lower corporate and income taxes lead to greater economic growth and higher wages, which translate into higher tax revenues; higher corporate and personal income taxes lead to lower economic growth and lower wages, which translate into lower tax revenues.

That is what I am talking about, a few years of going back to the 90s tax rate levels, as well as taxing income AS income , combined with intelligent spending cuts to defense and medicare, to create a surplus and payoff debt (reducing long term spending in debt interest) then FUND tax cuts with surplus revenue.

The debt and deficit issue cannot be fixed by spending cuts alone.

And lower tax rates do not equate to economic growth: