video from learn liberty. But the mathematics looks wrong. How can the percentage stay the same? I just don’t get this. Can anyone shed any light on this?
Maybe this clip will make more sense:
No. The more a state taxes, the more it spends and going back to the Clinton tax rates for the wealthy wouldn’t even nick a whole in the defiict.
As an example, under the Articles of Confederation, there was no power to tax. Once George Washington got the power to tax under the Federal Constitution, the deficits got even larger. When Jefferson cut taxes, he also balanced the budget.
Just take a look at how Greece, Italy and Spain are fairing at the moment. I rest my case.
It depends really. I don’t think the answer to this question can be known a priori. Higher effective tax rates can both reduce and increase federal revenue.
The bit that doesnt make sense is how the PERCENTAGE doesnt vary. I think its clear that if you have amassive tax rate, people are less productive and there will be more black market, but the percentage of GDP doesnt seem to make sense. The pie will get smaller but how can the percentage not vary?