(08-03-2018, 09:19 AM)B2hibry Wrote:

(08-03-2018, 08:08 AM)Gettin\ Jaggy with it Wrote: 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.

No his beginning argument is that tax cuts no way, no how increase revenue. I was attempting to show that is just not correct, no matter what your political economic beliefs. It’s basic economics that says it in fact does. 

The additional information is me being responsible and also stating that even though initial tax cuts will spark revenue increases, there is a point that addition or subtraction of other economic policy will need to be injected to steer the economy further. Thanks for muddying the water though.

If you're on the left side of the peak of the laffer curve, tax cuts will decrease revenue roughly in proportion to the cut.
Economic growth could work in the opposite direction, bringing increased revenue.  A tax cut often stimulates economic growth in the short term.  But the growth may not be as strong, as a percentage, as the cut was, again as a percentage.
And any tax cut that was done for temporary stimulation should be rolled back once the economy is healthy again.
And in order to find out if it might have worked, you have to adjust the raw numbers for inflation.
And even after you've done all that, all you have is a correlation.  It was not a controlled experiment.  You can not prove that it always works that way.

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