Historically, REVENUE has been an average of 18.5% of GDP, NO MATTER HOW MUCH YOU TAX!!! So, why keep raising taxes when it is the economy that really controls the amount of revenue government collects. We have long ago passed the equilibrium.
What REALLY determines how much revenue taxes bring in is the economy. There is no reason to raise income tax rates on ANYONE. Taxes are a percentage, NOT a fixed number. Milton Friedman spoke of this as taking a smaller percentage of a bigger pie.
When you raise taxes, then you are taking more money directly out of the economy. No matter who you are taxing, everyone's money is in the economy until the government takes it. So, taxing puts a drag on the economy. It makes recovery slower. The belief that taking money out of the economy is the key to fixing it is just legendary stupid.
When you cut taxes, you are not giving people a gift, you are allowing them to KEEP the money they have made in the economy.
Our market system has room for as many millionaires as there are people. Punishing people for being successful only means less will make it.
"The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries. "
-Sir Winston Churchill
Income taxes are supposed to be for the purpose of funding government, but it has changed to a means of hindering people from becoming wealthy. If you already are successful and headed upward then they will take more and more of the money that YOU have earned and give it to those that have not.
REDISTRIBUTION OF WEALTH....... Socialism......... This has become the purpose of taxes.
The people that are being called the rich are not the mega rich that people are imagining. These are investors and business operators that are the ones that can drive the growth of the economy.
The really rich are living off the interest of their amassed fortunes and won't be terribly hurt by the taxes. We've recently seen some of the Mega Rich come out and say tax them more because they can take it. Yet, all they really need do is fill in the little box on their income tax form that says they would like to pay more and how much they want to contribute. What do they do in reality?? THEY PUT THEIR MONEY AWAY IN AS MANY PLACES AS THEY CAN FIND THAT WON'T BE TAXED.
We don't have a revenue problem. We have a spending problem. Cut spending, cut taxes and the economy will grow and thereby increasing the revenue.