Lol @ people so unsophisticated they still buy the fake claim that cutting tax rates raises revenues.
Keep in mind this is about gains rates. We can discuss overall tax policy if you like as well.
So, I then have two questions.
1) Why did Bill Clinton lower the rates?
2) If data were to be presented showing an increase in the rate leading to lower gains revenue and a decrease in the rate leading to increased gains revenue, would you say anyone who thinks the opposite is true is unsophisticated? I'll get back to this question.
Please show me a 5 year capital gains tax total pre rate cut and post rate cut. Not a cherry picked transition year where people made strategic moves. A 5 year total before and after. Waiting for the numbers.
I'm happy to do that.
http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=161
Now I apologize you will have to zoom in to see the data or the link takes you right too it.
So let us review the data together.
In 1978 the max rate was 40%, by 1982 the max rate 20%. In those 4 years, the revenue gained from those rates went up by 40%. A rate decrease in 1982 through 1986 saw a 400% increase in revenue. I repeat Boca, a 400% increase. What slowed that momentum down? You guessed it, a rate hike in 1986, killing revenue from rates. It took 10 years to get revenue back up to 1986 levels, and then boom it takes off again when Clinton lowers the rates in the late 90s.
Now, I'll submit that other economic factors play a role in this data, and there are times where the revenue levels off some in the long term. (not surprising) But this data puts you in a pretty tough position.
So let's return to this question I posed....
If data were to be presented showing an increase in the rate leading to lower gains revenue and a decrease in the rate leading to increased gains revenue, would you say anyone who thinks the opposite is true is unsophisticated?
What do you say?
Of which programs? I don't want to conflate things.