A GREAT EXPLAINATION HOW LOWER TAX INCREASES THE COFER

WHEN HISTORY IS OUR GUIDE THEN THIS SPEAKS VOLUMES:

Walter E. Williams, the John M. Olin Distinguished Professor of Economics at George Mason University, said tax revenue is not the problem.
"The federal government has collected just about 20 percent of the nation's GDP almost every year since 1960. Federal spending has exceeded revenue for most of that period and has taken an unprecedented leap since 2008 to produce today's massive deficit. Since federal spending is the problem, that's where our focus should be."
And Thomas Sowell, senior fellow at the Hoover Institution in Stanford, Calif., said neither do numbers lie.
"In 1920, when the top tax rate was 73 percent, for people making over $100,000 a year, the federal government collected just over $700 million in income taxes – and 30 percent of that was paid by people making over $100,000. After a series of tax cuts brought the top rate down to 24 percent, the federal government collected more than a billion dollars in income tax revenue – and people making over $100,000 a year now paid 65 percent of the taxes," he wrote.

"How could that be? The answer is simple: People behave differently when tax rates are high as compared to when they are low. With low tax rates, they take their money out of tax shelters and put it to work in the economy, benefitting themselves, the economy and government, which collects more money in taxes because incomes rise," he said. "High tax rates, which very few people are actually paying, because of tax shelters, do not bring in as much revenue as lower tax rates that people are paying. It was much the same story after tax cuts during the Kennedy administration, the Reagan administration and the Bush administration."

http://www.wnd.com/index.php?fa=PAGE.view&pageId=237821