Political Quotes

“I wish to do that today and at the conclusion of my remarks put the full text of this op-ed in the record. Today's Wall Street Journal carried an op-ed by David Ranson called ``You Can't Soak the Rich.'' I find it compelling because of the proposals by some that we should raise the marginal income tax rates and thereby theoretically increase revenues to the Treasury. What Ranson points out is it is essentially a law of economics that raising tax rates not only does not bring in more revenue to the Treasury based on the historic record, but it can have precisely the opposite effect because it can harm the economy and, in fact, it is the growth in the economy that produces more revenue to the Federal Treasury. Let me quote a couple of comments from his op-ed. He said: No matter what the tax rates have been, in postwar America tax revenues have remained at about 19.5 percent of GDP. Now, there is another measure. If you go back somewhat less distance, the measure is about 1 percent less than that as a percentage of GDP, but the ratio remains the same and the point he is making remains the same, which is that raising tax rates does not raise revenue. In fact, raising tax rates can hurt the economy, which then reduces tax revenue.”