Decreasing taxes which increase revenue is not a myth. Its an economic policy, which often works.
About 20 years ago, Taco Bell successfully applied this principle and made billions. They announced that bean burrito prices were decreasing to .59. People bought many and they also bought a soda pop with them...which is 95 percent profit. They can afford to lose a few cents on a burrito, when people spend a dollar on a soda that costs 5 cents.
The tax cut to increase revenue was done in the Nixon Kennedy era. I specifically recall the cartoon: "Here is your tax cut, America, now spend it".
The reason it works is because of the multiplier effect. You see, when I spend a dollar, that firm has revenue and spends it, and this repeats.
Years ago, they said a dollar changed hands about 6 times per year. Each time that dollar changes hands it is taxed. Using a 25 percent tax bracket multiply 1.00 times 6 times .25, and you can see that the multiplier effect means the government will recover $1.50 for every extra dollar that Americans spend.
Its not a myth, its an economic principal that too many people like you can not comprehend. The question is not whether or not the goverment recovers the tax cut, the only question is how long it will take. Its like insulating your home.
Depending upon the percentage of energy costs you save, it will take x years to recover your investment.
America successfully used this to pull itself out of a depression in the 1930's.
They gave anybody a job. My father worked for the WPA, which was a government entitity designed to put people to work in the depression. The plan worked, and we came out of the recession as people had money to spend. Democrats need to check their history.
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