Can tax cuts pay for themselves?

When people discuss cutting taxes, the question of whether tax cuts can pay for themselves usually arises. I’ll try to answer that question here. The optimistic view says that tax cuts often pay for themselves because lower tax rates encourage economic growth. The larger economy then throws off higher tax revenue, offsetting the tax loss … Continue reading Can tax cuts pay for themselves?

Advertisements

Do the rich pay their fair share?

It is an article of faith to some class warriors that the rich do not pay their “fair share” of taxes. Is it true? We can evaluate this claim since there is plenty of publicly available data. The data here comes from a 2016 CBO report. Effective tax rates It is difficult to look at … Continue reading Do the rich pay their fair share?