Tax Revenue not equal to Tax Rate

Raising tax revenue is not the same as raising tax rates! If they were the same, then any business could make more money but just raising their prices sky-high!

We all know that is not true. In beginning business classes, the student learns the there is a price point that maximizes revenue. It is the sweet spot between selling the most (low prices) and and profiting the most (high prices).

Just so with taxation. All serious economists understand that there is a complex relationship with taxation, and the supply-side theory has always been proven, whereas the demand-side has been disproven.

It is a constant that liberals with state that supply side does not work, and they give examples. But their examples don’t even pass the “politfact” tests.

The Bush tax cuts raised revenue. This is a fact.

Seems the liberals want to be simplistic but fallacious in many different ways:

  • increase tax rates = increase tax revenue
  • illegal immigration = legal immigration
  • social justice = lift up the lowly (but lowering tide lowers all ships)
  • class warfare = freedom (it is the road to serfdom)
  • political campaigning = ad hominem attack
Previous Post

“Economics in One Lesson” – for our time

Next Post

Same sex marriage verses polygamy

Leave a Reply

Your email address will not be published. Required fields are marked *