The government’s annual expenditures and tax revenues are published in the separate annuals of World Book Encyclopedia.
The best example is the expenditures and tax revenues from 1981 to 1988, Ronald Reagan’s terms. During this eight-year period the expenditures (19) grew 66 percent totaling about $7.06 trillion and a tax revenue of $5.74 trillion yielding a debt of $1.32 trillion, under a Democratic Congress. Reagan cut taxes three times, the highest tax rate went from 70 percent to 28 percent. The tax revenues grew from $540 billion to $920 billion by 1988, for an increase of 70 percent.
With a population growth rate of 1 percent and an inflation rate of 3 percent this will yield an increase of tax revenue of 70 to 35 percent, or 35 percent due to the tax cuts. Reagan made the largest tax cuts that increased the tax revenues that fueled our economy. Dan Wood (Dec. 25 letter) looked only at two years of Reagan’s term and came to an erroneous conclusion.
Obama’s seven-year portion, 2009-2015, resulted in a total expenditure of $24.6 trillion with a total tax revenue of $17.7 trillion yielding a debt of $6.7 trillion! This does not include the year of 2016.
Initially the CBO did not think the Reagan or Bush tax cuts would increase the tax revenue, only increase the deficit, so why is the CBO falling back on their previous erroneous standings?
The government financial data of expenditures and tax revenues demonstrate that tax cuts produce economic growth and tax revenue growth. Also demonstrated was the out-of-control spending by Obama.