Tags: taxes | spending

Focus on Growth, Not Taxes

By Grover Norquist   |   Tuesday, 12 Jul 2011 02:57 PM

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)?



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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GroverNorquist
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...
taxes,spending
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2011-57-12
 

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