Fred Thompson in The Wall Street Journal


On Tax Reform: Tax cuts stimulate the economy

There is reason to smile this tax season. The results of the experiment that began when Congress passed a series of tax-rate cuts in 2001 & 2003 are in. Supporters of those cuts said they would stimulate the economy. Opponents predicted ever-increasing budget deficits and national bankruptcy unless tax rates were increased, especially on the wealthy.

In fact, Treasury statistics show that tax revenues have soared and the budget deficit has been shrinking faster than even the optimists projected. Since the first tax cuts were passed, when I was in the Senate, the budget deficit has been cut in half.

Critics claimed that across-the-board tax cuts were some sort of gift to the rich but, on the contrary, the wealthy are paying a greater percentage of the national bill than ever before. The richest 1% of Americans now pays 35% of all income taxes. The top 10% pay more taxes than the bottom 60%. Because of lower rates, money is being invested in our economy instead of being sheltered from the taxman

Source: Fred Thompson editorial in The Wall Street Journal Apr 14, 2007

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