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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Friday 29/03/2024, 02:49:58

29/01/2006 11:52:02 pm
Decrease Taxes and Increase Revenue. In 2003, the US cut the capital taxes substantially. The Congressional Budget Office hence estimated the revenue from that tax to decrease. What happened? It increased. This phenomenon has had many names; the Laffer curve, Reaganomics, dynamic effects. If you raise taxes, the activity in the society might decrease and lead to a fall in revenue. And if you decrease taxes, revenue might actually increase. There are lots of examples from various countries confirming this. In the National Review, Donald Luskin describes this latest piece of evidence:

"Table 3-5 on page 60 in CBO?s Budget and Economic Outlook published in 2003 estimated that capital-gains tax liabilities would be $60 billion in 2004 and $65 billion in 2005, for a two-year total of $125 billion.

Now let?s move forward a year, to January 2004, after the capital-gains tax cut had been enacted. Table 4-4 on page 82 in CBO?s Budget and Economic Outlook of that year shows that the estimates for capital-gains tax liabilities had been lowered to $46 billion in 2004 and $52 billion in 2005, for a two-year total of $98 billion. ...

Now let?s see how things really turned out. Take a look at Table 4-4 on page 92 of the Budget and Economic Outlook released this week. You?ll see that actual liabilities from capital-gains taxes were $71 billion in 2004, and $80 billion in 2005, for a two-year total of $151 billion."


Read the entire article here - >

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