Is There Really a Cost To Government By Cutting Taxes?

                       

Capital gains and dividends at only 15% is said to “cost” the government $403 billion each year. Capital gains at death are an additional $194 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 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 positive proof. The George W. Bush tax cuts as well.

                       

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.)