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Comment Re:two ways to solve the tax "scam" (Score 4, Informative) 1505

Usually when the government lowers taxes they see an increase in tax revenue because of increased spending since taxes are lower

No. This is the often-marketed Supply Side tax cut effect that is, as shown here, incorrect.

The correct statement is that a cut in taxes does not reduce tax revenues dollar for dollar. This is also over the long-term, like 30+ years. For instance, the Kennedy era tax cuts eventually reduced tax revenue by 70% of expected receipt.

While I do not have direct citations back this up, it has been the recent trend that the sellers of Supply Side Tax cuts to the Republican party have had to claw back the extreme claims. I think Bruce Bartlett has spent recent history setting the record straight. You can also find more information among Krugman's public articles.

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