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More taxes or better tax enforcement doesn’t necessarily mean more government. Those revenues can be applied to closing the budget deficit and even paying down
by PorterBHall 2y ago
More taxes or better tax enforcement doesn’t necessarily mean more government. Those revenues can be applied to closing the budget deficit and even paying down national debt, as the Clinton administration was able to do in the 90s.
- snapplebobapple 2y agoLets ignore that it's not really clear that Clinton raised taxes (he increased the income tax rate but dropped the capital gains tax rate, which is pretty unclear as to effect because it took a while for people to adjust their tax strategy to move as much as possible to capital gains). What happened under Clinton was primarily the same thing that happened up here in Canada, the dotcom caused a massive inflation in income as the stock bubble grew and was crystalized. It primarily wasn't more taxes, it was the taxes we primarily already had taking a share of a bigger pie. Overwhelmingly this isn't what happens though. Overwhelmingly more taxes mean more government in a historical context.