Do Tax Cuts Increase Revenue? (Part 2)
On March 24th, a reader posted a long comment following my post of November 8, 2010 titled "Do Tax Cuts Increase Revenue?" . It covered a lot of ground so it seemed that it would be useful to answer it in a post. Following is the reader's comment, interspersed with my replies: Hello my name is Marshall and i have some issues with your blog "EFFECT OF REAGAN, KENNEDY, AND BUSH TAX CUTS ON REVENUES" I found some issues here mainly involving the Reagan Tax cuts. you say and i quote "the GDP reached a high 10-year growth rate of 35.2% from 1983 to 1993. However, it reached higher highs of 37.5 from 1992 to 2002, 45.71% from 1947 to 1957, and 50.28% from 1958 to 1968. In fact, the above graph shows that the 10-year growth rate in the GDP has been relatively stable since 1975 to 1985 though it began to drop in 2008 and is projected to stay weak through 2015. Hence, these figures don't provide any strong evidence that the Reagan tax cuts permanently affec...