dlo@drutx.UUCP (OlsonDL) (11/15/85)
[] In article: <808@whuxl.UUCP> orb@whuxl.UUCP (SEVENER) writes: >Apparently supply-side advocates have difficulty understanding >basic categories of government revenues and expenses. >To wit Dave Olson responds to my figures: >> > tim > Dave Olson >> >I have posted this before so I will simply summarize the *facts* as >> >presented in a New York Times article, Sept. 18,1984: >> >> > 1)Tax revenues have *not* gone up. Here are the facts: >> > 1981 1982 >> > $284.1 billion, $276.9 billion >> >> Uh, Tim. Revenues were *only* $200 and-some-odd billion? Double those >> figures, and you will have the approximate figure for 1980. For last >> year it was something like $750 billion. Point of fact: according to >> the _Information_Please_Almanac_ of 1985, federal receipts for 1981 was >> $663.9 billion and for 1982 was $690.4 billion. >> >> David Olson >The 1981 tax cuts which were expected to produce the supply-side miracle >of increased revenues from lower taxes only involved INCOME TAXES. >The figures cited by the New York Times (quite properly!) >are therefore for actual revenues >from INCOME TAXES as tabulated by the Internal Revenue Service. >Since these were the taxes which were reduced, this should be the >category which increases in revenues according to supply-side theory. Tim, I wouldn't lead you astray :-). Again to quote my favorite source, the 1985 _Information_Please_Almanac_: (In Billions) Year 1981 1982 Individual income and profits taxes $322.8 $352.6 Income tax only $285.5 $298.1 (This was listed in the 1985 _World_Almanac_) Corporate taxes $73.7 $65.9 Indeed this is a drop in corporate taxes, but look at corporate profits in that same time (there was a recession going on then): Corporate profits $203.3 $165.9 >Thus as logic would dictate those taxes which were decreased (namely >income taxes) led to *reduced* revenues and those taxes which >were increased (namely Social Security) led to *increased* revenues. Read my lips Tim, B-U-L-L. Tax *rates* (not tax revenues) were cut. > tim sevener whuxn!orb My opinions are my own, and do not necessarily reflect those of my employer. David Olson ..!ihnp4!drutx!dlo