Quote:
Originally Posted by Brian Carlton
When you lower the tax rate, less revenue arrives. It's pretty basic.
Then, you wait and hope that the economy and the stock market improve and people earn/make more money and send it in.
There might be some relationship between the two steps.........there might not. Other factors could cause the economy to improve. The current administration will be raising tax rates. By your conclusion, the economy should move downward..........the moment that it occurs..........correct?
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When you lower the rate, more money is available to be spent, thereby having more taxes generated. It's simple economics...more in the pocket equals more to be spent on impulse buys, etc.
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