Even though its counter intuitive tax cuts work, but they have to be the right kind. All these credits, temporary cuts, refunds don't do anything. Its the flat rate lowering and tax simplifications that increase growth and revenue because it alters long term behavior. A great recent example is Egypt, they lowered their rate from 40% to 20% and doubled revenue while standard forecasting said it would be cut in half. Other example are abound throughout the former Soviet Bloc, you lower/simplify taxes you get more revenue.
In the US we spend more money complying and avoiding taxes then actually do on the taxes themselves. Think about that. If you look at US government tax revenue it's always about 18% of GDP no matter the tax rate. (Look it up, its really interesting it's called Hauser's Law) So the only way the increase revenue is to grow the economy and the highest correlation to economic growth is how many billion dollar companies an economy produces each year. So everything the government does should be centered around freeing start-ups to become billion dollar companies. That means simplified regulation and the removal of corporate welfare, both protect large companies from smaller start-ups.
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Even though its counter intuitive tax cuts work, but they have to be the right kind. All these credits, temporary cuts, refunds don't do anything. Its the flat rate lowering and tax simplifications that increase growth and revenue because it alters long term behavior. A great recent example is Egypt, they lowered their rate from 40% to 20% and doubled revenue while standard forecasting said it would be cut in half. Other example are abound throughout the former Soviet Bloc, you lower/simplify taxes you get more revenue.
In the US we spend more money complying and avoiding taxes then actually do on the taxes themselves. Think about that. If you look at US government tax revenue it's always about 18% of GDP no matter the tax rate. (Look it up, its really interesting it's called Hauser's Law) So the only way the increase revenue is to grow the economy and the highest correlation to economic growth is how many billion dollar companies an economy produces each year. So everything the government does should be centered around freeing start-ups to become billion dollar companies. That means simplified regulation and the removal of corporate welfare, both protect large companies from smaller start-ups.