Media Myth That Cutting Taxes Boosts Revenue Revived For 2012

Media Matters has a terrific post about the myth that tax cuts generate revenues and that bigger tax cuts generate larger revenues.

Media Matters shows how these claims are debunked by not only by those on the Left, like Paul Krugman but also by those on the Right, who actually proposed the claim and sold it to Ronald Reagan and George w. Bush.

Martin Feldstein, a Harvard economist who was the first chairman of President Reagan's Council of Economic Advisers estimated that a 10 percent tax cut would in fact reduce tax revenue -- but only by 3 to 5 percent.

"It is not that you get more revenue by lowering tax rates, it is that you don't lose as much," he said. [The New York Times, 3/26/08]


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This post I think ties in nicely with the last post from NJPP about what our tax dollars actually pay for.