Since slashing federal income taxes increases revenue and generates surpluses, why dont we cut taxes by 75%?

Question

for every dollar of income tax the govt collects, lets only collect 25 cents from now on. That will generate so much revenue that we will be giddy over the humongous surpluses and we will have more money to throw at programs like be able to have a better militarty, better roads, better schools, better everything......

Answer 1

Because voodoo economics doesn't work in the longrun...and if employed for too long always leads to recession. See, the problem the republicans have yet to reconcile is increased spending with tax cuts. But greed has always been and will always be their downfall.

Answer 2

The principle is based around a Bellcurve. At the extreme ends (maximum Taxation/Minimum Taxation) the money that comes in is very small.

At the top of the curve is when there is not enough benefit to avoid taxation (and not enough disincentive to work as there is at higher taxation)

so the ideal tax rate is the top of the curve. You just have to figure out which side of the curve your on.

Answer 3

Dimwit. till inflation replaced into at 2 hundred% the will strengthen in gross sales far outpaced the cost of inflation. In 1999 the tax gross sales for the federal government replaced into $a million.3 trillion. In 2006 the tax gross sales for the federal government replaced into $2.40 3 trillion. because of the fact the inflation cost in this usa has in no way BEEN everywhere close to 2 hundred%, your assertion isn't something yet a delusional attempt to lie to the knuckleheads that could even pay attention to you. ----------------- Edit: whether "interest creation" expenses have been low in the time of Bush's tenure, the unemployment cost replaced into soaring around 5% many of the time. Which fairly ability that anybody ALREADY HAD a activity AND did no longer prefer a activity CREATED FOR THEM. A "interest" is barely "created" while somebody accepts a place presented to them. Wow, you're stupid.

Answer 4

By that logic, if we cut taxes by 99%, the government will have more money than it could ever spend. While some politicians like to repeat the mantra that cutting taxes increases government revenue, studies have found no basis for this. It's simply not true.

Answer 5

Slashing taxes to generate revenue only works to a certain point, as you don't get that much more economic growth out of it.

At this point, spending needs to be slashed.

Answer 6

Is this out of the more you spend the more you save school of thinking? Some people will believe anything even if it goes against simple logic.

Answer 7

Because the politicians have kids to send to Yale and harvard, plus they are voting for another raise.

Answer 8

Well, it doesn't work quite that easily, but it does work.