Quote:
|
Originally Posted by godfry n. glad
Please note that the logical conclusion of his assertion is that infinitesimal taxation generates infinite tax revenues. Ergo, taxing each citizen $.01 each year will generate more than enough revenue to cover all government expenses and pay down the debt at the same time.
On the face of it, such a proposition is absurd.
It is correct that under given circumstances, reducing the tax burden can stimulate the economy. This is usually when those funds are released to be infused into the economy. Those most likely to do so are those at the lower end of the socio-economic scale, because basic needs are so much a part of the economic reality. Whereas, those at the top of the economic heap are the least likely to put that money into circulation.
Also, when spending is stimulated and production does not keep pace, like when the product being used is destroyed upon use (as with munitions), it can result in cost inflation...which is basically too many dollars chasing too few goods.
Reducing the tax burden can also reduce the tax revenue. It all depends upon a multitude of other circumstances.
|
You need to read the OP again. Rush addresses your mistake about zero tax rates.
Anyway I am glad not one poster was able to refute the facts:
Lower tax rates result in more tax revenue. It worked all four times in US history.
Take home message: Vote for conservatives and enjoy more of what you earn!