On 8/4/2011 12:39 AM, Mike Marlow wrote:
Han wrote:
Just Wondering wrote:
.... if ABC Company cuts its selling price to $9 each, it cuts its
income by a dollar for each widget it sells, so it will make less
money, right? Wrong. It stimulates the market - more people can buy

Widgets aren't like taxes....

You are correct Han. And further - Just Wondering's proposition is too
simplistic - as he even admits himself. It does not work that simplisticaly
in the business world - let alone in the convoluted world of the US tax
structure/economy.

Whether the proposition explaining why is too simplistic, or just wrong
doesn't change the fact that every time since at least JFK that tax
rates were lowered, tax revenue went up. The reason revenue increases
when tax rates are cut is debatable (most capitalists have no problem
explaining why, even Clinton knew) but the fact revenues go up is simply
fact. I guess you could say the IRS and GAO are lying, and make up your
own numbers, but good luck with that...

--
Jack
Got Change: More Taxes! More Spending! More Debt! More Fraud! More
Government! Less Freedom!
http://jbstein.com