Rising Revenue Is Not The Result of Raising Tax Rates

SEE HERE I know that those who believe in a static sort of zero sum game view of money think that raising tax rates will raise revenue, but the fact of the matter is that generally what happens is that raising tax rates contracts economic performance and creates caution in the markets and increases unemployment and either fails to raise tax revenue as much as expected or often actually reduces revenue. This is the Laffer Curve effect which is very real despite all the jokes made about it. Tax rate cuts often produce increased revenue. Unfortunately our brilliant leaders can never resist the temptation to increase spending whenever they get any more revenue and since they are already in deficit spending they just increase the deficit further. What is needed is to cut taxes and reduce spending simultaneously. This expands the economy and reduces the deficit. Wow — What a concept!