(08-03-2018, 12:16 AM)B2hibry Wrote:

(08-02-2018, 08:53 PM)mikesez Wrote: What error did I make?
I agreed with almost your entire post.
I double checked the monthly treasury statements.  There is no inflation adjustment for the older dollar values.
Are you making argumentum ad populum here?
Just because everyone here seems to believe that tax cuts actually grow Revenue, does that make it true?

I don’t care what your snapshot treasury statements say or your so called lack of inflation adjustment. It’s misplaced logic and data. Basically irrelevant to your argument as the economy doesn’t react instantaneously.

Yes, most here, history and economists know it is true that revenue actually grows with tax cuts, except you. Ever stop and wonder why a policy of tax cuts is issued when in a recession or slumping economy? It’s the spark that creates the roaring fire. However, If you don’t feed it or rearrange the coals, it will burn out. This is where some disagreement kicks in. 

People will argue that one single policy action is the only factor.  You need to consider supply side, consumer confidence, corporate confidence, investment, etc. Once again, taxation is the spark that can cause bad and good revenue reaction as can be described in simplistic form by the Laffer Curve or as some parties have twisted, the Laffer Line.

It is an absolute economic principle that there is a point of diminishing returns in regards to the impact tax cuts would have on tax revenue. This principle is illustrated by the Laffer Curve that you referenced. The Laffer Curve contradicts your earlier point that there is an absolute principle that tax cuts increase tax revenues. I think that that is the crux of the argument you and mikesez are having. At what point does lowering the tax rate decrease rather than increase tax revenues? Due to the myriad of factors that can affect the economy's health, and thus impacting tax revenues, accurately predicting that point is difficult. I would think that we may be approaching that point, based on recent data, but it will take awhile to be able to truly gauge the long term impacts.

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