Tuesday, May 15, 2012

How tax revenues were higher overall when ... - Finance information

Question by Dave B. : How tax revenues were higher when taxes were lower overall ?
I do a lot of reading and listen to a lot of political programs, and conservatives Repeatedly I hear that state under Bush, taxes were lower yet actual tax revenue was higher. I want to believe that this could be possible, but it seems contradictory. I suspect that I?m not being told the full story, or that facts are being manipulated. How would lower taxes across the board increase tax revenue?This is not a political rant in disguise, nor an invitation for political attacks. If you understand what they?re claiming and know the math behind it, please speak up Whether the claims are factual or not. Best answer:
Answer by

GOZ2FAST
1 Lower taxes encourages businessmen to invest more ? so the amount of businesses contributing to the overall system is greater, Therefore it works like Walmart, who sells at a cheaper price more stuff. They still come out ahead that further stores that sell less for a higher price.Would you rather have a cut of 30% of 100 businesses or 20% of 500 business ? lower tax rates encourages more people to get into the game ? and that is how it works.Another aspect of this, is when you allow people to keep their own money, they go out and spend it Inevitably, Which is then taxed as it goes around ?. if you keep all their money upfront ? you tax it just once recording.

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