Monday, November 15, 2010

Dynamic economy

Here's something you might try to understand.  When taxes are lowered on these evil rich people, our government may actually take in MORE revenue!  For example, "The CBO calculated that the post-March 2003 tax cuts would lower 2006 revenues by $75 billion, yet 2006 revenues came in $47 billion above the pre-tax cut baseline released in March 2003."  Why were those CBO estimates wrong?  That would be because by regulation the CBO is not allowed to take a dynamic view of the economy.  By that I mean the CBO cannot consider the fact that a person may adjust their economic activities in relation to the tax burdens they face.  This is why CBO estimates are always off base.  But as Barack Obama once said, he would do this "for the purposes of fairness."  Who can argue with that logic?


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