From the ATR website.
If economic growth can be boosted by 1 percentage point, tax revenues in 2021 will be the same as under current law, but without raising tax rates.
How much would an additional 1 percentage point of real economic growth add to tax revenues? According to CBO, $2.66 trillion.
But what about if the current tax rate hikes of 2013 are avoided indefinitely? That is, what if the top rate remains at 35 percent, and the capital gains/dividends rate remains at 15 percent (along with all the lower bracket policy remaining in place)?
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The answer is that there would be enough money such that tax revenues in 2021 would be $5 trillion, nearly a record at 21 percent of economic output and collecting the exact same amount of money as CBO's slow-growth, tax hike baseline.
This is what is meant by higher tax revenues being derived from economic growth, not from tax increases that make all of us poorer.
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