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I have difficulty believing that this is some ironclad law of economics without a lot of further study. Does it hold true for other countries? It would certainl
by sparky_z 11y ago
I have difficulty believing that this is some ironclad law of economics without a lot of further study. Does it hold true for other countries? It would certainly be possible to pass laws that decrease tax revenue (just reduce all taxes by 90% across the board). I would guess that this "trend" (untrend?) is at least partly due to the fact that those changes to tax law weren't random, but were passed by politicians who were reacting to contemporary conditions (both economic and political).
It's like observing that a driver keeps adjusting the gas pedal but their speed never changes and concluding that it's not possible to change a car's speed using the gas pedal. In reality, the driver is actively adjusting to local conditions (like hills) to maintain a constant speed.