If a tax cut increases government revenues, you haven't cut taxes enough.
About this quote
- What does it mean?
- If a tax cut raises revenue, the cut was not deep enough to stimulate growth.
- In plain terms
- A tax cut that increases revenue isn’t big enough.
- What can you take from it?
- Effective tax cuts should lower revenue while boosting the economy.
Where it applies
Putting it to work
Questions to consider
- What size of tax cut is optimal for growth?
- How do other economic variables affect revenue after a cut?
Another view
Revenue effects can be influenced by many factors besides cut size.
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