Friday, April 15, 2011

Lower Tax Rates Lead to Higher Tax Revenues

“Tax cuts for the rich are what led to this massive deficit,” is what the Democrats keep yelling. The facts (you know, those pesky things lefties are oblivious to?) are different.  CBO numbers show that from 2003, when the Bush tax cuts went into effect, and 2006, the last year of Republican majorities in both houses of Congress, tax revenues to the Treasury rose from $1.783 trillion to $2.407 trillion, a 35% increase.

Federal Tax Revenues
2003 2006
  Billions % of GDP Billions % of GDP
Individual 794 7.3 1,044 8
Corporate 12 1.2 354 2.7
Other Tax 857 7.9 1,009 7.7
Total 1,783 16.5 2,407 18.4
In January 2007, both houses of Congress were taken over by the Democrat Party at a point when under a Republican Congress the deficit was $160 billion, its lowest point in five years. Go here to see what happened next.
(H/T MBG!)
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