Johnny Munkhammar skrev på denna blogg från 2004 till sin död 2012. Bloggen är upprätthållen som ett minne och som referens till Johnnys arbete av Johnny Munkhammars minnesfond.

This blog was operated by Johnny Munkhammar from 2004 until 2012 when he passed away. This blog is now in a memorialized state and operated by the Johnny Munkhammar fund.
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Sunday 2021-11-28, 02:59:39

2005-08-22 10:31:08
Again: Lower Tax = Higher Growth! In the Financial Times, Amity Shlaes writes about the higher growth, lower unemployment - and higher revenues - that have followed the massive tax cuts in the US by the Bush administration:

"Last year the deficit was a humiliating 3.6 per cent of gross domestic product. The deficit this year, new numbers suggest, will be 2.7 per cent of GDP ? acceptable. The difference? Extra revenues. It seems federal revenues for this year will be $85bn (47bn) higher than anyone was predicting as recently as March. Growth, too, may be stronger than expected, remaining above 3 per cent. Unemployment? Some forecasters now believe it will dive deep into the mid-4 per cent range. ...

But there should be no surprise. For the inflows are the direct result of the Bush administration?s commitment to a concept: individuals respond to incentives. Not merely targeted ones ? a break, say, for a specific group of manufacturers ? but overall incentives for enterprise. ...

The Bush White House and Congress flattened the steep stair-step progressive rate structure of the income tax, lowering the top marginal rate. They cut the tax on dividends to 15 per cent from 39.6 per cent; 15 per cent became the new (lower) top rate for capital gains. They likewise created a one-time amnesty programme for companies repatriating profits. Corporate tax revenues this year increased 42 per cent upon the year before."

Read the entire article here (subscribers only) - >

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