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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  • Waski_the_Squirrel

    Any tax increase MUST be accompanied by lots of spending cuts. I don’t mind a few tax increases as a compromise to get the spending cuts. But, the spending cuts must be actual, real spending cuts (not smaller than expected spending increases), and they must be specific, not general.

  • sbark

    The problem with any spending cuts even being floated by the Left……..is that they are in year 9 or 10 of this grand program………

    In todays political world, if the spending cuts dont happen now, year 1 or year 2——-they will never happen…….

    I really can live with Boehnor giving on revenue——-but the Dem’cats cannot be allowed to lie to country for a 3rd time in very recent history about spending cuts.

    Tip O’Neal lied to Reagan, HWBush was Lied to in order to persuade him out of his “read my lips” promise.

    The Left never intends to cut spending——its their poltical existence, They just got elected via free stuff as part of the slow and steady pacification program that is decades old………..forget crap about demographics——-USA is being pacified.

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