April 18, 2011

On how "tax cuts for the rich" increase revenues to the government.


There is something that happens when you lower tax rates. The first thing you do is create a positive outlook and attitude on people who hire other people. You create a positive financial outlook on people who invest their money in the growth of their business... you end up creating more jobs. As tax rates fall, small businesses have more money to grow. They're not sending as much to Washington, they keep it, they can hire more people, they can invest in the growth of the business, which is what they want to do, because that's where everybody involved in the business benefits. Is when it grows. When the business grows, large and small, obviously it creates more revenue, and more people are hired. And that's called the tax base. So you have more people earning income. More people paying taxes. So where it may not be the case that the individual rich guy sees his personal income tax bill go up, there is an increase in the number of rich guys paying taxes, so that there is more revenue generated.