Myth #1: Tax Revenues remain low. FACT: Tax Revenues are above historical average.
Myth #2: Bush Tax Cuts substantially reduced 2006 Revenues & expanded the Budget Deficit. FACT: Nearly all of the 2006 Budget Deficit resulted from additional spending above the baseline.
Myth #3: Supply side economics assumes all tax cuts pay for themselves immediately. FACT: It assumes replenishment of some, but not all, lost revenues. Raising Tax Rates discourages the taxed behavior & shrinks the Tax Base. Lowering taxes encourage taxed behavior, offsetting some Revenue losses.
Myth #4: Capital Gains taxes don't pay for themselves. FACT: Capital Gains Revenues doubled following the 2003 Tax Cuts. Investors are the most Tax Policy sensitive. Lower taxes lead to more investment, which more than offset the low Tax Rate. This has been proven in 2003 as well as other times. These investments are what turns the U.S. as they usually concern education, technology and a host of other important programs.
Myth #5: Bush Tax Cuts are to blame for the projected long term Budget Deficits. FACT: Projections show that entitlement costs dwarf the projected large Revenue increases.
Myth #6: Raising Tax Rates are the best way to raise Revenues. FACT: Tax Revenues correlate with economic growth. Not Tax Rates.
Myth #7: Reversing upper income Tax Cuts would raise substantial Revenue. FACT: The low income Tax Cuts reduced Revenues.
Myth #8: Tax Cuts helped the economy by putting $$ into more people's pockets. FACT: Pro-growth Tax Cuts support incentives for productive behavior.
Myth #9: Bush Tax Cuts have not helped the economy. FACT: The economy responded favorably to the 2003 Tax Cuts.
Myth #10: Bush Tax Cuts tilted toward the rich. FACT: The rich now shoulder most of the Income Tax burden.