Democrats are still holding their hands in front of their eyes refusing to believe in the supply
side revolution, but the rest of us can take a look at the facts from government tax collections
this year.
Supply side economics says that the critical factor in economic performance is the marginal
rate of taxation, i.e., the share of your next dollar of income that the government demands. In the
Bush 2003 tax cuts:
The capital-gains tax (for gains held at least one year)
was cut to 15 percent from 20 percent while the maximum tax rate on corporate dividends
was slashed to 15 percent from 38.6 percent.
This year, according to
Michael T. Darda,
there has been a “45.2 percent fiscal year to date surge
in corporate tax revenues and [a] 35 percent jump in non-withheld (i.e., capital gains) receipts.”
In any estimation, this has to be remarkable.
What’s that? Oh, of course, I agree Democrats. This surge in revenue just couldn’t be due to the supply-side Bush tax rate cuts.
It just couldn’t be. No, there is no chance. Not a chance in hell. No, there must be another reason,
a completely different reason. But whatever the reason is, it couldn’t be the result of a healthy expanding
economy responding to the Bush tax cuts, the Bush tax rate cuts.
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