Hello Goodlulu,
There are a number of references available on line that describe the
effect of tax cuts on treasury revenues. One thing to point out
however, is that many of them will disagree on the actual effects,
taking into account different factors to make their point. As a
result, you will not necessarily get "one answer" that is correct for
any particular tax cut.
One of the more extensive resources is a 38 page report titled "It
Pays to Cut Taxes", produced in 1986 and on line at
http://www.adamsmith.org/policy/publications/pdf-files/pays-to-cut-taxes.pdf
as a PDF file. This was a report generated as part of a conference
held in London that received some press in major newspapers at the
time. There are a number of other references at
http://www.adamsmith.org/policy/publications/tax-and-economy-pub.htm
which you may wish to review as well.
The "Citizens for Tax Justice" have a much shorter paper, produced in
1997, at
http://www.ctj.org/html/cgcost.htm
which describes the predicted effects (by various groups) of the 1997
capital gains tax cuts. This is a predictive look at the tax cut with
a few charts showing historical trends in capital gains and related
measures.
The Center on Budget and Policy Priorities compares the 2001 Bush tax
cuts with cuts made by Ronald Reagan back in 1981 at
http://www.cbpp.org/2-6-01tax2.htm
Much of the paper describes the repeated "tax cuts" in the Reagan era
that were made to basically prevent a growth in tax revenue due to the
indexed tax brackets.
The Heritage Foundation has a 1996 report titled "The Historical
Lessons of Lower Tax Rates" at
http://www.heritage.org/Research/Taxes/BG1086.cfm
which includes a number of charts illustrating trends along with the
text describing the three major US tax cuts in the 1900's (1920's,
1960's, 1980's).
There are a number of other references on tax cuts as well. Search on
Google with the phrases
historical tax cut effect treasury revenue
to get over 20,000 referencs. Many of them make the point that tax
revenues generally increase as a result of the stimulus caused by
reduced taxes. Others will dispute that kind of claim by taking other
factors into account. Don't hesitate to use a clarification request if
you need additional references or if I have not addressed your
specific needs.
--Maniac |