Taxes and revenues - a history lesson


	Taxes and revenues - a history lesson

jklugman

7-2-2008 9:40 AM

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tags:

krugman, paul krugman, taxes, taxation, revenue

jklugman says:

Paul Krugman takes on the myth that tax cuts result in increases in tax revenues.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/20924884-a675-4e66-b16d-1de8804bc1cf/05D0AE74-1D07-4C11-BFDB-BB60616604D4/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://krugman.blogs.nytimes.com/2008/01/16/taxes-and-revenues-another-history-lesson/" href="http://krugman.blogs.nytimes.com/2008/01/16/taxes-and-revenues-another-history-lesson/" style="font-size: 11px;">krugman.blogs.nytimes.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://krugman.blogs.nytimes.com/2008/01/16/taxes-and-revenues-another-history-lesson/">So the chart below shows real federal revenue per capita — specifically, revenue in thousands of 2000 dollars per person — since 1993. All data from <A href="http://www.bea.gov">BEA</A>.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://krugman.blogs.nytimes.com/2008/01/16/taxes-and-revenues-another-history-lesson/"><P>What you see is that there was a huge revenue increase during the Clinton years. There was also the much-touted revenue surge of the later Bush years, but this followed a spectacular revenue plunge earlier. At this point real revenue per capita is only slightly higher than it was at the end of the 1990s. That’s actually abnormal: given the long-term growth of the US economy, we should have expected a continuing upward trend in revenues per capita. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://krugman.blogs.nytimes.com/2008/01/16/taxes-and-revenues-another-history-lesson/"><P>Overall, the graph suggests that yes, Virginia, cutting taxes reduces revenue. But it also tells us that stuff happens: the stock bubble inflated revenues in the late 90s, the collapse of that bubble hit revenues thereafter, then the housing bubble did its thing, and so on.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://krugman.blogs.nytimes.com/2008/01/16/taxes-and-revenues-another-history-lesson/"><div align="center"><img src="http://content9.clipmarks.com/blog_cache/krugman.blogs.nytimes.com/img/2E58405B-33F2-4D14-A961-BD2398A3A8EE" alt="INSERT DESCRIPTION" /></div></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/05D0AE74-1D07-4C11-BFDB-BB60616604D4/blog/" title="blog or email this clip"><img src="http://content6.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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