This is JimNtexas's Typepad Profile.
Join Typepad and start following JimNtexas's activity
Join Now!
Already a member? Sign In
Recent Activity
The amount of revenue collected in reality is almost always far short of what Congress estimates. That's because the models Congress uses don't accurately account of the reduced economic activity that is inevitably associated with tax cuts. The most dramatic example of a huge delta between forecast and actual increased tax revenue from a tax hike occurred in 1990 when President Bush agreed to a 10% 'luxury tax' on expensive boats, airplanes, and I think jewlery. While a small amount of luxury tax was collected, the tax revenue received was less than the cost of administering the luxury tax. The luxury tax had the effect of wiping out the American custom yacht business and crippling the aircraft industry. Thousands of jobs were lost. Net/net the luxury tax destroyed thousands of blue collar jobs and cost the government money. Tax hikes never raise the amount of money that Congress estimates.
1 reply
JimNtexas is now following The Typepad Team
Mar 1, 2011