Supply-side economics: Difference between revisions

According to the Laffer Center, "the higher the starting tax rate, the more dramatic the supply-side stimulus will be from cutting the tax rate." If the economic stimulus effect of the tax cut overcomes the revenue lost from tax cut, overall tax revenue will increase.<ref name="laffercenter"/> Kennedy reduced taxes from a top marginal rate of 91% to 65%,<ref>{{cite web | url=http://www.ontheissues.org/celeb/John_F__Kennedy_Tax_Reform.htm#9 | title=OnTheIssues FactCheck: JFK lowered top income tax rate from 91% to 65% | author=Jesse Gordon | publisher=[[OnTheIssues.org]] | date=Dec 2012 | accessdate=2013-11-18}}</ref> which increased government revenue. Also, Reagan reduced taxes from a top marginal rate of 50% to 28%,<ref>{{cite web | url=http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=200 | title=OnTheIssues citation of "For the Record", by Donald Regan, p.284-285 | author=Jesse Gordon | publisher=[[OnTheIssues.org]] | date=May 1988 | accessdate=2013-11-18}}</ref> causing an increase in government revenue during his term.<ref name="receipts.34-16">GPO, US Government Printing Office, Federal revenue, Table 2.1 - Receipts by Source: 1934–2016 http://www.gpo.gov/fdsys/pkg/BUDGET-2012-TAB/xls/BUDGET-2012-TAB-2-1.xls</ref> The [[Reagan administration]] and the Kennedy administration both justified such changes in socioeconomic terms by invoking the old saying that "a rising tide lifts all boats."<ref>{{Cite web|url=http://townhall.com/columnists/column.aspx?UrlTitle=a_rising_tide_lifts_all_boats&ns=MikeBouchard&dt=09/12/2006&page=full&comments=true|first=Mike|last=Bouchard|title=A Rising Tide Lifts all Boats|publisher=[[townhall.com]]|date=12 September 2006}}</ref>

 

 

===Marx and Smith===