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Cutting tax rates and cutting revenue are not the same
Posted on: October 2, 2020 at 16:19:26 CT
ScottsdaleTiger MU
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High tax rates are a classic disincentive and Macroeconomic models treat Taxes as a negative for economic growth.
Conversely, cutting taxes is considered to be a positive for economic growth.
The classic model is (1) tax rates are cut which increases incentives, (2) increased incentives causes the private sector to engage in activities that boost economic growth and (3) the growth increases tax return.
In models, the additional revenue from growth is greater than the lost revenue from reduced rates.
Conversely, cutting taxes is considered to be a positive for economic growth.
The classic model is (1) tax rates are cut which increases incentives, (2) increased incentives causes the private sector to engage in activities that boost economic growth and (3) the growth increases tax return.
In models, the additional revenue from growth is greater than the lost revenue from reduced rates.
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Cutting tax rates and cutting revenue are not the same - ScottsdaleTiger MU - 10/2 16:19:26