I have seen on here that cutting taxes actually increased IRS tax receipts, is this true?

Question

ace have alink?
also what is the tax now, since 86?
Thanks

Answer 1

No, it's NOT true. While this administration blows its horn regularly over "increased tax revenues", it quietly ignores the reality that NET tax collections have dropped substantially since the tax cuts were put into place. One can easily find, on the IRS website, the amounts of net collections for each year of the past decade. The NET collections is the actual revenue for any given calendar year AFTER all refunds are issued.

This administration's stance on tax revenues, like most of everything which comes out of its mouth, is only a half truth.

Answer 2

Yes, tax revenue is higher now than it was before the tax cuts were put into effect. The reason for this is that the money people are able to spend spurs growth of the economy, which increases average income and therefore taxes, while raising taxes hurts the economy, so less money is being made by people.

Answer 3

This is a long standing Republican myth, which they "prove" by carefully cherry picking certain dates when it happened, but the cause and effect are not related.
If it were true, the tax rates could be lowered to zero, and the government would take in all sorts of revenue. Does this sound logical to you?

Answer 4

And...the willingness of people to work goes up when they get more $ from each additional dollar of income.

If you use google to research historical tax brackets you'll find some amazing ones for federal income (MFJ):

1918, 77% if taxable income was over $1million
1944, 94% if taxable income was over $200,000
1981, 70% if taxable income was over $215,400

Add in state taxes why would anyone want to keep working for such a small pittance.