ARE YOU NEW HERE? NOT LOGGED IN? PLEASE TAKE A MOMENT TO REGISTER FOR AN ACCOUNT AND LOGIN TO REMOVE THIS WINDOW
Welcome to PatsFans.com. Do you have an account? If not - please take a moment to register for our forum and experience a much smoother experience with fewer ads, along with no longer having to see this notification window. Also learn about how you can receive a free Patriots T-Shirt from the Patriots Official ProShop by CLICKING HERE. Please enjoy your stay here, and Go Pats!
Allowing the Bush tax cuts to expire on the top earners will raise revenues. I'm not even sure what you're arguing here.
I think he is referring to the Hauser effect or Hauser's law, which is the idea that the amount of revenue that can be raised is bound between ~15% and ~20% of GDP regardless of marginal rates. I don't think we are at the upper end of that range right now and actually were below the historic range in 2008-2009 so it may be that an increase in rates will raise revenue. The argument against it is that doing so will slow down the economy or cause changes in behavior (people realize less income and capital gains to avoid the higher taxes) so that while rates increase, revenues stay the same (or even decrease).
Hauser's Law is a theory by one economist that postulates that in the United States, federal tax revenues will always be equal to approximately 19.5% of GDP, regardless of what the top marginal tax rate is. The theory was first suggested in 1993 by Kurt Hauser, a San Francisco investment economist, who wrote at the time, "No matter what the tax rates have been, in postwar America tax revenues have remained at about 19.5% of GDP." Critics of Hauser's Law, such as Zubin Jelveh in a Wall St. Journal editorial, point out that tax revenues have fallen as top income rates declined if you don't include Social Security revenues. From fiscal year 1946 to fiscal year 2007, federal tax receipts as a percentage of gross domestic product averaged 17.9%, with a range of 14.4% to 20.9%. During the years referred to by Hauser (FY 46 to FY 93), the average was 17.7% and the range was 14.4% to 19.7%.
Last edited by The Brandon Five; 04-14-2011 at 12:44 PM..
DONATE TO PATSFANS.COM
RECEIVE A FREE PATS T-SHIRT AND SAVE 15% OFF WHEN YOU BUY FROM THE OFFICIAL PROSHOP!
Free T-Shirt & Save 15% Off!
Like Our Site? Please help support our site and server costs by DONATING TO PATSFANS.COM and receive a FREE PATRIOTS T-SHIRT and SAVE 15% off EVERY purchase you make from PatriotsProShop.com. You'll also receive added benefits to your account including Removing All Ads During Your Experience Here At Our Forum.
NEEDED YEARLY SITE DONATIONS: 345 | CURRENT # OF SUBSCRIBED SUPPORTERS: 98
Which is why a Flat Tax at a 17% rate is the most efficient and will grow the economy.
"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."