Charge Enterprises Inc (fka CRGEQ)

[blackhawks]

http://www.nysscpa.org/cpajournal/2004/1004/essentials/p36.htm

capital gains tax cuts in '03

"Economic effects. Past capital gain tax rate cuts have increased revenue to the federal government in the first two calendar years after the cuts, yet lost revenue thereafter. Some observers speculate that the increase in revenue arises from the unlocking effect of taxpayers who wished to sell their assets and invest in an alternative financial vehicle that might yield a greater return.

The responsiveness to lower capital gain tax rates declines as taxpayers’ marginal tax rates decline. In addition, according to Congressional Research Service Report of Congress—Economic and Revenue Effects of Permanent and Temporary Capital Gains Tax Cuts, Updated January 29, 2003 (issued February 26, 2003), the amount of tax revenue decreases as the capital gains are taxed at lower rates. Finally, a capital gains tax cut induces stock sales, which causes downward pressure on stock prices in the market."


Supply-side Spin
June 11, 2007

Sen. John McCain has said President Bush's tax cuts have increased federal revenues. But revenues would have been even higher without them.

Summary
Republican presidential candidate Sen. John McCain has said that the major tax cuts passed in 2001 and 2003 have "increased revenues." He also said that tax cuts in general increase revenues. That’s highly misleading.

In fact, the last half-dozen years have shown us that we can't have both lower taxes and fatter government coffers. The Congressional Budget Office, the Treasury Department, the Joint Committee on Taxation, the White House’s Council of Economic Advisers and a former Bush administration economist all say that tax cuts lead to revenues that are lower than they otherwise would have been – even if they spur some economic growth. And federal revenues actually declined at the beginning of this decade before rebounding. The growth in the past three years that McCain refers to brings revenues back in line with the 40-year historical average as a percentage of gross domestic product.

It’s unclear how much of the growth can be attributed to the tax cuts. Capital gains tax receipts did increase greatly from 2003 to 2006, but the CBO estimates that they will level off and decrease in the next few years. The growth overwhelmingly resulted from a sharp rise in corporate tax receipts, the cause of which is a topic of debate.