On the recordMarch 2, 2011
But it's called free enterprise. Now, let me give you another example that occurred when I was a Congressman here, and I think the beginning of when you were, and that was that the second Bush, G.W. Bush, copied the example of JFK and Ronald Reagan. And both of those Presidents understood that when the government cuts taxes in the right way, it actually gets the economy going. In fact, what happens when you cut taxes the right way, the government actually gets more revenue. Now, that sounds weird. Let me just try and explain. I have done this a couple times before, but tell me if you think it makes sense. How is it that the government can cut taxes and get more revenue in? Well, think about it. Let's say you're king for a whole year. And the only thing you can tax is a loaf of bread, and so you start thinking if I put a penny tax on that loaf of bread, I can figure out how much bread people are eating and figure out how much to get for tax revenue. Then you think, hey, how about I put $10 tax on every loaf of bread. Then you think maybe people wouldn't buy any bread. So you start to think there is probably an optimum point where you can put some tax on the bread, people will still be eating bread, but you will get your most revenue.
