On the recordMarch 2, 2011
So the tax cuts go into effect same place here, this line, this is the GDP, this is actually losing GDP or gaining; you can see the average here is about 1.1 percent; but after those tax cuts, it jumps to 3.5. You can see these are a lot stronger economy. So the economy seems to do better when you allow business people to take the money, put it in their business, create jobs. There is more people working, more tax revenue comes in. Well, wait a minute. You cut taxes, that means your revenue's going to go down? Well, let's see what happened to revenue. Here's the story. Here's the tax cut right here. The revenue has been going down. They cut the taxes, and 4 straight years of increase in revenue. So what's happening there is that actually if you do the right kind of tax cut, just as you say you get the free enterprise system working, and you can turn the economy around. JFK understood that. He did it. It worked for him. Ronald Reagan did it. They said, oh, trickle down economics and all this kind of stuff, but it worked. In fact, here is another chart. This is the tax rate on the most wealthy people. This is this red line. It started at 90 percent; it's come down. You notice as the tax on the wealthy people comes down, the amount of Federal revenues goes up. Now, that's weird. Why would that be? It's the same principle. You can overtax and basically run the economy into the dirt.
