The Bush tax cuts on capital gains have had a dramatically positive effect on the economy as well as caused tax revenues to the federal government to surge. This is one of the major reasons that the deficit has been reduced to historically low level 1.2% of GDP.Here is a chart that was shown on CNBC’s Kudlow & Company the other night. It shows that after the Bush capital gains tax cuts capital gains tax revenues soared (as in doubled).
This was part of a debate between Art Laffer (on the supply side) and James Surowiecki, financial columnist at The New Yorker (for the anti-supply side) – a very interesting discussion.
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