Letter: Tax cuts fuel our economy
Tax cuts fuel our economy
The FOIA provides the avenue for the financial annual data of the government tax revenues collected and the 19 expenditures made. All one has to do to do determine the impact of tax cuts is to correlate the tax revenue collected with the tax rates for the years of period of interest.
As an example, the Reagan tax rates included all tax brackets, the highest tax rate in 1980 was 70 percent and by 1989 it was reduced to 28 percent. The tax revenues in 1980 was $520 billion and by 1989 it had grown to $917 billion, which is an increase of 76 percent!
These Reagan tax cuts not only increased the revenue collected but fueled our economy by increasing jobs and income levels. Also, the GW Bush tax cuts produced an increase in tax revenue, jobs and income levels.
Obviously, Susan Lanning has not looked at the annual tax revenue data and is just parroting the phony cries of Chuck Schumer and Nancy Pelosi, nor does she understand how investments fuel our economy through jobs and increased incomes.
A large boost to our economy would be to reduce the corporation tax rate from 35 percent to 20 percent which would be competitive with the rest of the world corporation’s tax rates. It should be obvious why the congressional Democrats are against lower tax rates for corporations and the rich. By the way, the rich pay 70 percent of the federal tax revenues, according to the IRS tax data.