Raising Tax Rates on Higher Income Earners Could Lower Tax Revenues

On CNN's program The Situation Room with Wolf Blitzer, commentator Gloria Borger said, "if you're going to lower the tax rates, where are you going to get the money from?" First of all, nobody is talking about lowering the tax rates. They are talking about whether or not to continue the existing tax rates, which are set to expire after a temporary extension. And Obama is talking about raising the tax rate on higher income earners.

But when Ms. Borger asked, "where are you going to get the money from?" if you don't raise tax rates, that assumes an automatic correlation between tax rates and tax revenues, which is demonstrably false.

webmaster@thenewamerican.com (Thomas Sowell) 16 Jul, 2012

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Source: http://www.thenewamerican.com/opinion/thomas-sowell/item/12082-raising-tax-rates-on-higher-income-earners-could-lower-tax-revenues
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