America Would Add $2.2 Trillion In Tax Revenues Over The Next Decade Even Without Tax Hikes

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President Obama’s most recent “fiscal cliff” offer to Speaker John Boehner calls for $1.2 billion in new tax revenues over the next decade. But, as Jim Pethokoukis is pointing out, the CBO projects that economic growth over the next decade will create $2.2 trillion in new tax revenues without raising taxes.

If we keep the status quo tax situation, revenue as a share of GDP will rise by nearly 40% — from $2.4 trillion in 2012 to $3.4 trillion in 2016 — through greater economic growth. Over the next decade, tax revenue would rise by $2.2 trillion.

And growth won’t even be that great, according to the CBO, with GDP increasing by an annual average of closer to 2% than 3% between 2013 and 2022.

Wouldn’t it be better to boost to raise tax revenue — and incomes — through economic growth than by raising tax rates?

Well, yeah, especially when tax hikes would undoubtedly diminish that revenue growth by throwing a bucket of cold water on the economy.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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