Tax Cuts, Tax Revenues, and Growth: Reconciling Theory with Evidence

Yesterday I made a post about how federal tax revenues have not increased as a result of the Bush tax cuts from 2001. Actually much of the post is based upon an analysis of official data that David Cay Johnston did.  In the comments though, William Sullivan asks: I realize that economic growth, as measured … Continue reading Tax Cuts, Tax Revenues, and Growth: Reconciling Theory with Evidence

News Flash: Federal Taxes Have Plummeted

David Cay Johnston reported this a few weeks ago and I almost missed it.  It's particularly relevant, though, what with official Washington talking about how to cut spending, restrain the deficit, etc. (at least attacking the English language with euphemisms about war in Libya). Let's recap what Washington, especially Republicans, have been saying (from Johnston's … Continue reading News Flash: Federal Taxes Have Plummeted

Tax Cuts Do Not Increase Labor Supply

A central tenet of U.S. "conservative" and Republican economic policy since at least the election of Reagan in 1980 is that tax cuts cause people to work more and longer hours. This is part of the so-called "supply side economics".  The implication is that the longer hours and more labor supply will then raise the … Continue reading Tax Cuts Do Not Increase Labor Supply