Jim Inhofe: “I really do not like people saying-- because I am always afraid someone is going to believe it--that somehow when we…”

“I really do not like people saying-- because I am always afraid someone is going to believe it--that somehow when we reduce tax burdens on individuals that is going to automatically reduce the revenues that would have otherwise come from those taxes. History tells us just the opposite. In fact, yes, we are going to have a deficit. We understand that. We are currently in a war, and we understand even though the amount of additional money, some $48 billion, that went into the war effort is totally inadequate, it is going to have to be more, and we are going to see deficits. The other factor causing deficits is a downturn in the economy. We all know for every 1 percent drop in economic activity, that translates into $24 billion of lost revenue. Turning that around, for every 1 percent increase in economic activity, revenue will increase by $24 billion. It has been proven over and over throughout the history of this country that every time we have had the opportunity and the courage to reduce taxes, not raise taxes, it has resulted in increased revenues.”