POLLIWOG (Tadpole): the early stage of an animal that will eventually become a frog, hoping to be kissed by a princess, turning into a prince! POLIBLOG (Political Blog): the early stage of a center-right political blog that may eventually become a full blown blog of the center-right. Join in if you find any merit in the comments. If you are on the left and disagree, feel free to straighten me out! Who knows, with effort from all of us this blog may turn into a prince!

Location: San Diego, California, United States

Monday, May 17, 2010

"The Revenue Limits of Tax and Spend"

David Ranson in todays WSJ introduces a chart developed by W. Kurt Hauser 20 years ago that empiracally shows tax revenues will NEVER exceed 20% of GDP! Why? With a 70,000 page tax code more loopholes are searched out as taxes are increased.

So - increase taxes which certainly has the effect of decreasing GDP - and instead of increased income it is reduced! Obama and the CBO cannot see this unintended consequence and it is right before their eyes!

But maybe this is part of their plan: to allow the deficits to spiral out of control and then implement a new non-income related tax - VAT? - to save us!



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