Lower tax rates, higher tax income

Opponents of President Donald Trump's tax cuts have this belief that for every dollar taxes are cut, revenues to the treasury are also cut by the same dollar. This is a fallacy. Reductions of tax rates cause a more robust economy, which in turn creates more employment and more revenues over a period of time.

Tax revenues to the treasury were $956 billion in 1980 before the Reagan tax cuts. After the tax cuts, revenues exceeded this amount eight of the next 10 years. In 1962, John F. Kennedy, an icon of the Democratic Party said the following: "In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise revenues in the long run is to cut the rates now."

Louis W. Scatena

Elgin