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Government Hits One-Day Tax Revenue High


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Yes, I am happy that the economy is doing so well.  It is doing so well in large part because of the tax cuts.  The booming economy causes people to make more money and therefore pay more (nominally) in taxes, even at a reduced rate. There is no way to spin that into being a bad thing.  I would rather make 1,000,000 per year and pay 300k in taxes than 30k a year and 9k in taxes, even though with the 1M$ salary I pay 291k more in taxes.  I know that is an extreme case, but you get my point (i hope).

 

So...despite the fact that the tax rate is greatly reduced.  Despite the fact that the economy is improving, and people are making more money, you still insist that people are taxed more than ever.  What would you recommend we do then?  Cut taxes and increase revenue again?

 

The bottom line is that somewhere there is a tax rate that maximizes revenues.  We cut taxes and revenue went up.  Lets cut taxes some more!

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I've just got this crazy obsession with cutting spending, and am not so excited that the government has MORE to spend.

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I've just got this crazy obsession with cutting spending, and am not so excited that the government has MORE to spend.

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Oh. Dont get me wrong. I am very displeased with the spending of this administration (and ones before it). We spend WAY more than we should. Government is too big and too powerful. As reagan said, government is not the solution, government is the problem. But at some point cutting taxes will lower revenue. The fact that we cut taxes and raised revenue means that we are still drastically over taxed, and need to lowere the tax rate further to find that inflection point. Once the inflection point is found we can continue lowering taxes (and thus revenue) until we reach a comfortable point of government spending.

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