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@Pelham1861, With tax cuts come jobs and with jobs greater revenues.

But not enough to make up for the lost taxes.

"Even over the long term, once you've allowed all of the extra growth to feed through into extra revenue, cuts in capital taxes juice the economy enough to recoup half of the lost revenue, and cuts in income taxes deliver a boost that recoups 17 percent of the lost revenue. So a $100 billion cut in taxes on capital widens the budget deficit by $50 billion, and a $100 billion cut in income taxes widens the budget deficit by $83 billion."

by David C on Sep 8, 2011 2:56 pm • linkreport

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