Tax Cuts Have Track Record For Producing Revenue
October 19, 2000
Observers have noted something curious about the presidential debates: the more Al Gore practices class warfare politics by attacking George W. Bush's tax cut plan, the higher Bush continues to rise in the polls.
Gore has played constantly on the theme that Bush's across-the-board cut would aid the wealthiest one percent of taxpayers. But as analysts explain, most of the one percent are self-made men who have made the rest of our lives better by giving us goods and services we enjoy. More than two out of three on the Forbes 400 list of wealthiest Americans did not inherit their wealth.
Bush also has history on his side when it comes to the economic impact of tax cuts.
- Tax rates were cut in the 1920s, 1960s and 1980s, and after each reduction the economy soared.
- After each tax cut, tax collections from the wealthiest one percent of taxpayers also went up.
- In the 1920s and 1960s, the economy grew at a four percent rate, and tax revenues from wealthy taxpayers doubled.
- After the Reagan tax cuts in 1981, the income tax share paid by the top one percent rose from 16 percent in 1980 to 26 percent in 1990.
History shows tax reductions typically generate more wealth creation and more tax payments by the affluent.
Source: Stephen Moore (Cato Institute), "Gore's Envy Politics: He Hits The Rich, Even As They Pay Most Of The Taxes," Investor's Business Daily, October 19, 2000.
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