superrific
Legend of ZZL
- Messages
- 7,299
Not in general. It depends on the tax rates that currently exist.Tax cuts promote economic growth.
A long time ago, I used to have this conversation with randman. It drove him to mouth-frothing even by his standards. First, we agreed that the optimal tax rate was not 100% or 0%. Somewhere in the middle. That means that raising taxes doesn't necessarily increase revenue (the current estimate for the Laffer turning point is about 70% IIRC), but also that cutting taxes doesn't necessarily improve economic performance. It's only a good thing if the tax rates are already too high.
There's not much evidence I'm aware of that our current tax rates are too high and choking growth. In fact, most of what I've seen is that our current tax rates are suboptimal, and they can be justified as preferences but not as efficiencies. Those are professional studies by professional policy people.