Tax policy and gross income. Consumption levels have little effect on federal taxes, though some states have a sales tax. Federal tax revenues are higher today than three years ago in large part because of tax policy changes, I agree -- the stimulus tax cuts were ended and part of the Bush tax cuts were repealed. Growing gross income also had an effect.[/QUOTE] Consumption is what drives GDP so now you're agreeing with me that GDP has little to do with federal income tax revenues? We have year after year deficit spending and more debt and all of it could be solved with improved tax policy. You can grow GDP to $20 trillion and you will still have deficit spending and debt because tax policy determines tax revenues...
...[/quote] Note for record that is not my quote. No. If you have the same tax policy and GDP grows to $40 trillion what happens with tax revenues?
[/QUOTE] The problem is your government spends much faster than tax revenues can keep up...Obama's budget projections show increased government spending every single year and rates much higher than GDP growth or tax revenue growth...guaranteed deficits and more debt for at least the next ten years! You can play with the numbers all you wish but bottom line is unless government changes the tax policy there won't be increased tax revenues...
