Does it Cost the Government to Cut Taxes?

                       

Capital gains and dividends at only 15% are said to “cost” the government well over $400 billion each year. Capital gains at death are $200 or so billion. But what if there were no capital gains and dividend taxes?

                       

The political left continues to think of tax "cost” in terms of “static" accounting. That is, they think solely in terms of what the government gives up first in tax elimination, but not in potential revenues from such action.

                       

However, past experience indicates that lower tax rates produce higher tax revenues. A look at gigantic tax revenue increases after the Reagan tax cuts is but one positive proof. The George W. Bush tax cuts are another.

                       

For reasons known only to those who want higher tax rates because they produce more massive government, the left thus persists in mouthing antiquated tax “costs” jargon. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)