Friday, August 10, 2012

UK: No increase in government revenue after tax cuts

The Economist

Romney's tax plan

Now that's some dynamic scoring

Behold the Historical Tables of the Office of Management and Budget. The federal government's receipts for 1981-86, in billions of 2005 dollars:

1981    1,251.1
1982    1,202.6
1983    1,113.4
1984    1,173.9
1985    1,250.5
1986    1,277.2

Do you see the "unexpectedly large increase in tax revenues" resulting from the 1981 marginal rate income tax cut? Me neither! It took five years just to get back to par. It seems important to me to catch these little untruths and step on them before they can scatter, reproduce and create more mischief.

Read it at The Economist:

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