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Whilst in most countries the introduction of a flat tax has coincided with strong increases in growth and tax revenue, there is no proven causal link between the two. For example, it is also possible that both are due to a third factor, such as new government that may institute other reforms along with the flat tax. A study by the IMF showed that sharp increases in Russian GDP growth and tax revenue around the time of the introduction of a 13% flat tax were not the result of the tax reform, but of a sharp increase in oil prices, strong real wage growth, and intensification in the prosecution of tax evasion.
Because Mr. Hauser's horizontal straight line is a simple fact, it is ultimately far more compelling. It also presents a major opportunity. It seems likely that the tax system could maintain a 19.5% yield with a top bracket even lower than 35%.
Originally posted by infolurker
You are correct,
Jobs moving overseas and other causes of "lost GDP" are primarily responsible for the lack of GDP growth recently but my point is raising taxes is NOT going to put more revenue in the Government coffers to pay for all of the spending. The only way to get out of this is to grow the GDP.
I do not have a problem with import taxes on foreign goods or rewarding / penalizing companies that keep jobs here instead of outsourcing. This is simply explaining that raising taxes is not going to work.
Originally posted by habu71
although I have not decided yet which to vote for, it will take a stimulus to enable corporate America to grow AND a reason (economic) to grow jobs in America to turn the economy.......You cannot offer a stimulus to keep jobs in America AND increase the income tax rates at the same time.....IMHO