Biotech Values

[jbog]

Poorgrad,,

We have been "brainwashed" in two areas, first that lowering tax rates increases tax payments and second that the raising of tax rates increases federal receipts.

American citizens have paid 8.8% to 9.2% of GDP in federal taxes (not including fica/medi) since WWII. During that time the highest tax rates have been between 35% and 90%.

So the real answer is that what happens when the government lowers income tax rates the GDP increases and we still pay the same 8.8% to 9.2 % of that GDP.

GDP determines Federal Receipts not tax rates.

http://www.heritage.org/research/features/budgetchartbook/fed-rev-spend-2008-boc-T1-Income-Tax-Receipts-Stay-Constant.html