Revenues Gained in Taxing the Rich

Non-blogging Advised by Wolves found this graph posted last year at Reason, which they pulled from American Thinker.

Advised by Wolves writes:

I am pretty sure that the models used by the Congressional Budget Office are about as accurate as the models used to predict global warming.

Federal Revenue as a percentage of GDP has held stable at about 19%. This is a historic fact of the last 80 years (since 1930), despite the tax rate of the wealthiest Americans.

Yet, the CBO consistently scores the end of the Bush Tax Cuts as a revenue enhancer to the Federal Government. Just as consistently, this has not occurred while the economy is in recession. Revenues continue to fall and only turn around when the economy recovers. Based upon historical evidence, CBO scores are wrong, therefore, the mathematical models that produce these scores are wrong.

To which The Big Kahuna responds with:

This is the classic example of garbage in, garbage out.  The CBO works with assumptions given them by Congress.

I am waiting for a president to run on the platform of limiting Congress’ influence in the areas of science and economic theory. Geez, the damage they did with just the food pyramid is staggering.

Posted August 19th, 2011 Filed in Economics and the Economy, Taxes and the IRS