dlo@drutx.UUCP (OlsonDL) (12/06/85)
[] In article <837@whuxl.UUCP> orb@whuxl.UUCP (SEVENER) writes: >I concede victory, Dave. Indeed, as your figures indubitably >show, in fact federal income tax receipts did *INDEED* decline. >Underneath your figures I place figures with very rough >corrections for inflation of 8% in 1980 and 5% for years >thereafter. Actually this is a *conservative* estimate as I >believe the inflation rate has in fact been higher during >those years. Therefore the actual declines in revenue are even >*worse* than these admittedly very rough estimates: >> Dave's figures from Budget Office: >> Year 1980 1981 1982 1983 1984 1985 >> Individual Income Tax >> (in $billions) 244.1 285.9 297.7 288.9 296.2 329.7(est.) > inflation adjusted 244.1 264 261 241 235 249 >There are several points of importance here. First is to note that *even the >raw figures* practically show a decline in revenues. Second, is >that even with the big jump in revenues projected for 1985, that the >total revenues adjusted for inflation are still *LESS* than in 1981 >before the tax cuts. I wouldn't claim any trophies just yet if I were you, Tim. A publication called the _Statistical_Abstract_of_the_United_States_1985 lists the value of inflation, among other things, for various years. According to it, inflation averaged about 6.5% between 1980 and 1985. I will concede that income tax revenue adjusted for inflation is less than in 1981, but it cannot be blamed on the tax *rate* cuts. Consider 10 years earlier. According to the same source, inflation averaged 6.7% between 1970 and 1975. Federal individual income tax in 1970 was $90.4 billion, and in 1975, it was $122.4 billion. That means that 1975 income tax revenues adjusted for inflation was $81.8 billion. That's less than the adjustment of $84.5 billion in 1970. > tim sevener whuxn!orb My opinions are my own, and do not necessarily reflect those of my employer. David Olson ..!ihnp4!drutx!dlo