President Barack Obama and his entourage continue to promote a tax increase on the "rich" to pay for outlandish government spending.
The rationale is that higher tax rates on the rich mean higher tax revenue to the government. They berate anyone who claims that a tax cut will actually increase tax revenues.
Even though some have suggested that the Kennedy tax rate cuts and the Reagan tax rate cuts promoted a surge in economic growth, few would claim that the Bush across-the-board tax rate cuts of 2003 would have actually raised tax revenues.
Well, here are some numbers that might change your mind. The government's Office of Management and Budget announced that income tax receipts as a percent of the size of the U.S. economy were 6.9 percent in 2004, 7.5 percent in 2005 and 7.9 percent in 2006. Of course, if you don't want to be confused by the facts, you can ignore this data.
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Diane V. Nugent
Hilton Head Island